"Merely accepting the fact that people do not necessarily make the best decisions for themselves is politically very explosive. The moment that you admit that, you have to start protecting people," Kahneman says.
This is, of course, only true for some ethical frameworks, and it does little good to handwave that away as he does here. Many people do not hold ethical systems that involve maximizing the utility functions of others.
Technically, you are correct, but on a personal note, the media quotes one of my heroes, speaking casually, expressing a sentiment that many people have, and you want to bust his balls?
Yesterday I heard an interesting story on the radio about US President Obama's pick to head the Office of Information and Regulatory Affairs, Cass Sunstein. I recommend checking out the story, but here are a few key excerpts.
At the risk of starting a discussion that will be wrecked by political wrestling, I'm always hopeful when I hear about governments applying what we learn from science to policy. Not to say that this always generates good policies, but it does generate the best policies we have reason to believe will be good (so long as you ignore the issue of actual politices that might get in the way).