I dislike this quote because it obscures the true nature of the dilemma, namely the tension between individual and collective action. Being "not in one's right mind" is a red herring in this context. Each individual action can be perfectly sensible for the individual, while still leading to a socially terrible outcome.

The real problem is not that some genius invents nuclear weapons and then idiotically decides to incite global nuclear war, "shooting from the hip" to his own detriment. The real problem is that incentives can be aligned so that it is in everyone's interest every step along the way, to do their part in their own ultimate destruction.

Of course, if "right mind" was defined to mean "socially optimal mind," fine, we aren't in our right mind. But I don't think that's the default interpretation.