In the cold light of day there's presumably an "acceptable" number of deaths, but whatever that number is would also surely be an upper limit. I don't think, for example, that anybody would take kindly to the idea of 1,000+ deaths from Covid alone being remotely tolerable or acceptable, not to mention barely sustainable.
The other point, which should hardly need making, is that it's not an either/or situation. If Covid runs rampant then many people get sick, clog up the healthcare system, and in any case aren't able to work or participate in daily life, all of which have damaging economic effects -- in particular, clogging up the healthcare system would in principle lead to a surge in deaths from other preventable causes. It's simply nonsensical to suggest that allowing this to happen would be in any way helpful to "the economy".
The question is whether there's a realistic danger of this any more. I don't claim to know the answer to that, although I'm sure that the vaccination programme will have an impact on this "fourth wave" that we might be seeing. I'm surprised that the Government didn't anticipate even the slight rise in hospitalisations that we've seen; or, more likely, I'm surprised that the Government had specified a date for total unlocking, when they should have understood that it was going to be too optimistic.