Freeing data is problematic for privacy reasons.
Even if you don't have problems with releasing your own medical data some other people have problems. Anything that might reduce in some people refusing to sign up for the service reduces the virality of the internet service. Successful web 2.0 sites need high virality.
You could add an optional button to release health information to the public but I would still imagine that it would be hard to convince a sizeable number of users to switch to that option. Users are selfish ;)
Why is this post being voted down? Do you consider virality/quality tradeoffs to be distracting?
When you're suffering from a life-changing illness, where do you find information about its likely progression? How do you decide among treatment options?
You don't want to rely on studies in medical journals because their conclusion-drawing methodologies are haphazard. You'll be better off getting your prognosis and treatment decisions from a social networking site: PatientsLikeMe.com.
PatientsLikeMe.com lets patients with similar illnesses compare symptoms, treatments and outcomes. As Jamie Heywood at TEDMED 2009 explains, this represents an enormous leap forward in the scope and methodology of clinical trials. I highly recommend his excellent talk, and I will paraphrase part of it below.