Good points all around. It's funny to me that the Hippocratic oath is often summarized as "do no harm" when it's always more complicated and nuanced than that.
More to the point, I find that systems work really really really well, until humans are involved with their needs and greed. The algorithm is just the latest in a long line of things "ruined by humans". One outstanding example, to me, is communism. If you think about it, on the surface, it seems like a great idea, for everyone to be equal and get what they need as they need it; in practice, every time it has been attempted, those with power/authority, always allocated more to themselves and their friends, than to everyone else, almost always causing the majority to suffer so that a few could live in luxury.
There's a lot more to it obviously and I'm not going to get into the nuances of it any further than that. I recognise that this is a grossly simplistic take on the issue, but I'm only using it as a vehicle to make the point. The people governing the system will always cause problems within the system they are supposed to govern for their own benefit.
People are the problem.