Natural supplements are effectively marketed as medication (despite a label indicating the FDA has not evaluated the claims). Many people I have spoken to genuinely believe natural supplements to be actual medicine based on the way they are marketed.

The issue with incorrect diagnosis is might lead to incorrect or ineffective treatments. "Natural supplements" are the incorrect or ineffective treatments themselves: the unregulated claims they make is very similar in substance and effect to the quasiregulated claims that 23andme is making.

And which ballpark would you say is closer to the area of a "food" or "drug"?

If you look at the FDA's mandate, it is pretty strongly oriented to products for treatment, not medical diagnosis. The medical diagnosis angle is mostly there due to certain forms of quackery.

I develop medical devices use for diagnosis for a living. Some organization has to watch over this stuff, it just so happens to fall to the FDA. What's your proposal? Do you believe that these devices should not be regulated?

If your device is a pen and paper, I don't agree it has to be regulated.