I agree with you there, lots of things should get competed down to low or no producer surplus. The problem is that you have to pick one of price discrimination,

I agree with you there, lots of things should get competed down to low or no producer surplus. The problem is that you have to pick one of price discrimination, unaffordable medication, or unavailable medication. If you don't allow for price discrimination, then many new medications cost so much per patient with the relevant disease that your choices are to have an unaffordable average price charged to everyone, or just don't make the medication in the first place and let nobody have it. With price discrimination, you can keep the average price high by gouging those who can pay, and using that to subsidize those of more modest means. There's no choice here that's an unalloyed good. There's always tradeoffs. Price discrimination is just sometimes the lesser of several evils.