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> the real alternative is that it gets thrown in the trash and wasted, and everyone is worse off despite feeling better about themselves

Depending on what's the minimum quality you consider acceptable for the product, you might want to throw away something and have good reasons to feel good about yourself doing it. There is a point where something dips below good ("less effective medication") and even neutral ("it's an empty pill"), into actively harmful ("it will kill you faster"). Discarding it instead of monetizing it is the positive outcome.