Yeah. This overcorrection happened in my country too. We saw what happened in the US and the result was doctors became more afraid of prescribing opioids even when in cases of acute pain where it's warranted. Fear of causing harm to patients due to risk of drug dependence.

And yet benzodiazepines are taken by vast amounts of people as if it was water.

It might be both. An over-correction made more likely in part due to religious beliefs.