15-20% of people either developing pneumonia or otherwise requiring hospitalization is the real meat of this that has the potential to strain resources and reduce the amount of timely care given not only to those infected with the virus but also those who otherwise need care due to being too fat, too old, etc.

A 3% fatality rate is still really bad for something as infectious as this, though. Most people have an extremely poor understanding and "feel" for probability, statistical outcomes, and large numbers, which is surely a major reason why the average person--who has no agenda other than wanting to be intellectually vindicated for what TV channels they watch--will downplay the number or crudely attempt to compare it to other causes of death.