> alters the trajectory to bring down the rocket in a less populated area, fewer people die
It might also cause more deaths.
It might also cause more deaths.
An exception to this might be that the rocket aims a city of thousands, who get sheltered successfully, which means the rocket would kill about zero people. When the rocket now gets deviated it might hit a target with hundred people who didn't get sheltered. Therefore the result for the population might be worse. My feeling (and I am definitely not an expert) is that this is comparatively unlikely, though.
In many situations, it makes far more sense to save the Iron Dome counter-missles.
[1]: http://www.maannews.net/eng/ViewDetails.aspx?ID=712463 [2]: http://www.ynetnews.com/articles/0,7340,L-4542242,00.html