Wii board comparable to 100x more expensive physio "force platforms"

As someone has has in the past worked in biotechnology software and is currently working on biothech instrumentation software - you are EXACTLY correct.

The problem with #2 is that we could get a lot of things cheaper and faster to market with only slightly more risk for the consumer. But the regulators have no incentive to take on that extra bit of risk. Sick people on the other hand...

It's considerably cheaper to build your own gym equipment than ever buying it. I remember reading someones efforts to build a human hamster wheel, built from steel tubing which cost ~$300. I know I saw a wooden one built for ~$50 of lumber. IIRC the wooden saw took a mitre saw and a single wood chisel, so with tools included it likely cost less than $100. The wooden human hamster wheel looked considerably sturdier than most wooden furniture capable of holding several people.

Exercise and 'medical' equipment go through rigorous testing, mostly to absolve the developer of liability.

I agree with your assessment, but it kind of bothers me that it's the status quo that medical technology has such a high barrier to entry. IMO, it should be that if a doctor thinks that a tool is useful, then he should be able to use it. Just about any other professional would be granted this freedom.

I think however that this becomes more understandable in terms of pharmaceuticals, where there is clearly an element of danger associated with a lack of testing.