The quote says that only when he’s touching someone with his hands does attacks get reflected.
So if Goku attacks Daemon, his attack won’t get reflected unless Daemon is actively touching Goku. In fact, if Goku fired off any type of ki blast, Daemon is dead instantly.
Also there’s other ways around this ability. If Beerus destroys the planet then he’s not targeting anyone, not Daemon or Eida so they’d still be dead either way since no attack at them would be reflected.
He doesn’t need to since his body can just kick in to ultra instinct, which on its own should bypass Eida’s ability since Goku doesn’t need to perceive Eida from then on for ultra instinct to attack the opponent.
The issue with the going mad part is 1) he doesn’t need to attack Eida, all he needs to do is so much as flick his fingers and she’s dead immediately. 2) He doesn’t go mad instantly, the first symptoms are fevers and headaches so again he can have more than enough time before he goes mad to do something as trivial as flick his fingers. And 3) Dragon ball characters have also resisted mental manipulation that forces your brain to go mad or cause indescribable pain so goku could simply just resist that affect of Eida’s ability as well.
I have, and there are ways around it which I am listing out now.