I agree that late-stage capitalism can create really tough situations for poor families trying to afford drugs. At the same time, I don't know any other incentive structure that would have brought us a breakthrough like AlphaFold this soon. For the first time in history, we have ML models that are beating out the scientific models by huge margins. The very fact that this comes out of the richest, most competitive country in the history of the world is not a coincidence.
The proximate cause of the suffering for terminally-ill children is really the drug company's pricing. If you want to regulate this, though, you'll almost certainly have fewer breakthroughs like AlphaFold. From a utilitarian perspective, by preserving the existing incentive structure (the "deeply broken situation" as you call it), you will be extending the lifespans of more people in the future (as opposed to extending lifespans of more people now by lowering drug prices).