Yes. To the extent that there are regulatory gaps today, they're almost exclusively filled with quack medicines.
I'm sure the market might work it out in the long-run, but in the meantime people will suffer from inadequate (or even detrimental) medical care.
You seem to accept this logic for drugs, but quack mechanical devices can cause harm as well. For instance, an inappropriate hearing aid could hasten hearing loss.
> What about costs and benefits, too?
We should definitely work to improve the regulatory process, but just giving up on the whole concept of regulation seems counterproductive.