"Global Economic Shutdown with Shelter In Place" is the NEW approach, not fast local quarantines. Fast local quarantines are how we (public healthcare experts) stopped measles, smallpox, polio, etc outbreaks before vaccines were available. And we still use those methods (fast local quarantines) for eradication purposes when they spring up again.
Just like our immune system. I'm sure stopping our heart would slow down the disease, but...
Fast local quarantines and such as you are describing are great, if you catch it early. If strong measures are taken before it spreads, it is reasonable to quarantine all sick and people in contact with the sick. Taiwan was able to do this, and has had only minimal cases and minimal disruption. There is community spread basically everywhere now, so it is too late for local measures. It's almost as if people should have been listening to public health experts in January when it was clear where this was heading.
Is there any way to do this with a disease that can spread for a week before symptoms show when we don't have anywhere near adequate numbers of tests? The issue here is that unlike most other diseases, this one goes from one person somewhere has it to many, many people in many places have it before it can be detected in its original location.