It’s obtuse because it’s not like another one is going to crop up in the same town in the same day to give the workers jobs, nor is it going to solve the issue of regulating the industry properly. The people enforcing the policies need teeth, and those teeth should be able to bite at the people causing these conditions. Places get like this because 3rd party inspection is underfunded and underpowered. Shutting a place down means it cuts into profits while potentially cutting off workers’ incomes. It doesn’t mean the owners or board get significantly impacted.
I think the difference can be drawn in parallel to cigarettes: an unfiltered cigarette is worse than a filtered one for smoking. Both are obviously bad for you, but if you’re stacking carcinogens and other health concerns, eventually you’ll reach someone’s breaking point. I don’t think anyone is claiming alcohol is healthy, but I also don’t think the response should be “it’s already unhealthy, so this isn’t won’t stop anyone”. Every risk associated decision we make adds to the statistics pool for whether we get sick. Mitigating that might actually worry someone enough to switch to a healthier (not healthy) form of alcohol consumption.