Some people do these things. But I believe that they are overreacting, and from your phrasing so do you. So why are you proposing that health data be held to such absurd (and unhealthy) standards?
> A genetic diagnostic can completely crush a person's outlook on life. This is suicide-level stuff potentially.
Then the person has serious mental issues. I'm not saying that hearing you are susceptible to a serious disease should slide off like water from a duck's back, but if a person feels that learning a medical diagnosis may cause them to commit suicide, then under no circumstances should they engage a company like 23AndMe that clearly states up front that they will NOT be providing counseling.
As far as I can tell, no one INCLUDING 23AndMe is proposing that they get a "free pass". In this case @mntmn reported their error to them and they corrected it, not just for him but for ALL future patients. That is better than most doctors do when THEY find an error.