I believe Eliezer endorses the decision principle "choose the option with largest net benefit," but predicts that democratic societies will operate under the decision principle "choose the option which can be best defended publicly."

That is, his comment as a whole makes three related points: first, a consequence of having stores where banned products are sold is that unintelligent customers will kill or seriously injure themselves with the products sold therein, second, this consequence is sad, and third, democratic societies are unwilling to allow consequences that are visibly that sad. For me to say he endorses the argument, I would require that he say or imply "and those societies are right," when I think he heavily implies that he understands but disagrees with their argument.