So if I'm the bad guy with the gun I just need to wait until my panicked, untrained victim with his low-precision gun has wasted its two bullets somewhere into the landscape and then put a bullet into his head?
The WW2 Liberator pistols were mostly designed to create fear. Germans at checkpoints could no longer largely assume the citizens were unarmed. It works in a war setting because you're already beyond the point where you are accepting friendly casualties as part of the plan.
In a peace setting, more guns == more gun deaths. Not just due to accidents, but also because people on either side (both criminals and law enforcement) are much more likely to shoot in uncertain situations because they have to assume the other guy is armed. In most european countries, when you get robbed you are likely to lose your wallet and highly unlikely to lose your life. In countries with lots of guns, the robbers shoot more often because when the guy makes a sudden move, it could be him drawing a gun, not just panic.