I don't disagree with your point, but I did read a post by Sean Goedecke[1] (whose opinions on the world of LLM-stuff I've generally come to respect) that I found relevant. It's not that the second-order effects don't matter to them, it's more that both the cat's probably out of the bag on those negative externalities regardless of the progress of frontier models, and that they are truly, sincerely, in-their-bones worried about the first thing and therefore focused on it since that's something that they might still have some agency over.
[1] https://www.seangoedecke.com/they-really-do-think-ai-might-k...