Most of the cases where self experimentation becomes a viability are cases like in this article. Where funding doesnt exist. There is no competition because there is no funding for the topic. If he hadnt done it, nobody would have. Also, for some people the aim isnt personal profit but actual progress.

I think your take is overly zealous, if you are really worried you could make it a requirement for grants. Which it already is.

edit: Maybe for a different framing, picture it more like climbing a mountain. You do it because its there, it is that simple. All the rest (sponsorships and the like) is just ways to get funding to get you up there. You were already going to go, more funding just makes it saver. And as unhealthy as it is, i think society should not get involved further as me not dragging anyone else in with me. After all, how is this any worse then eating or drinking myself to death. Or giving myself a heart attack (to come back to professional athletes)