Even if the minimums were raised, that doesn’t stop airplane pilots from scud running and flying VFR into IMC. And basic Class G VFR minimums for fixed-wing aircraft is low enough that they too could cause a danger to IFR aircraft and people on the ground, so should those minimums be raised too?
I can’t say for certain why helicopter VFR minimums are lower than fixed-wing, but my guess is that it has something to do with the fact that helicopters can safely set down (and depart) almost any area that’s reasonably larger than the helicopter itself. All this pilot had to do was to find about a 100’x100’ area to set down, or turn back to the airport he just passed, and there wouldn’t have been an accident. His clients would have been inconvenienced, but they would be alive too.