This is on the right track but you have to zoom out even more to see how things swing back the other way. Strikeout rate is a byproduct of approach at the plate. So the question is not about that single at bat, "would you rather have a K or a ball in play/out in play". It's are you better off with the good things that the approach that generates more Ks gives you.
As an extreme example, if you were in the same situation 5 times and went HR, HR, HR, HR, K with one approach, and GO, GO, GO, GO, 1B with another, we would never say the second one was better just because it avoided strikeouts/unproductive outs. In practice, higher K rate is associated with doing more damage when you are not striking out, so the idea that K's are bad because they remove the chance of something good happening is incomplete. This doesn't mean more K's are always better, but that you have to look at the totality of production instead of putting a microscope on the bad outcome when it happens.