Susan. Lets be realistic here. There are almost half a million people living in Australia 85 years and over, over 4 million 60 and over, over 7 million 50 and over. How do you isolate up to one third of the population that, as you say, are more at risk, without impacting on the community as a whole. Sure those under 25 are at least risk, but they still died according to figures at 1-2 per thousand. Aged 35 and the risk is somewhat higher. Tucking away such a huge number of people is near impossible. Besides as mentioned, children at school will carry the illness home to their parents and along the line.
This is not a minor illness. It kills, and it kills a lot of the young, though not proportionately as many obviously as the old. I mentioned the death rate for Spanish Flu, which based on figures available was 2.5%. This illness is suggested at 3.4% at this stage. Almost 100 million died from Spanish flu, more they say than both WW1 and WW2 casualties. Check out the photos of the time.
Having read many books on plagues in the past purely out of interest and research well before this event started, I'm familiar with just how devastating these events can be. The Bubonic Plague of 1347-50 for example changed the economic structure of Europe completely, dismantling the feudal system. Whole communities just disappeared. Not all are anywhere near that severe but these are usually once in a hundred year events, and they can be devastating if not checked. Countries around the World are quickly finding that the only effective way to deal with it is to shut things down and limit movement of the population. That is the best way to burn it out. Other options suggested have no doubt been considered and dismissed. Peoples health must have greater importance than economics. Better to be poorer and alive than wealthier and dead.
Serious plagues like those over the past century or so, kill in the millions such as the 1890, 1919, 1957 plagues and of course AIDS which has killed 32 million minimum. They are not to be understated.