First off Eugene I want to thank you for taking time to articulate your answer. I could tell you spent some time in your thought there. A thread this deep will not likely get read as much and I almost put the question as a top thread because I wanted some thoughtful feedback from others. Now for the commentary on your answers:

Next, overpricing and unavailability of pharmaceuticals is a very glaring problem, particularly for aged folks who need basic meds just to get through each day (I am not referring to trendy new medications with untested/unproven track records, either).
I can see this as huge problem Eugene. The Drug companies are
running out of control on somethings but they are a business. How do you stop overpricing? Is it that they have a patent on the drug and therefore they can gouge? Is it the investment in R and D that they are trying to re-coup?

Third, overtesting, overtreatment, and inappropriate performance of surgical procedures is a huge area of concern.   Does every headache require an MRI scan?  Does every (any) cold need antibiotic treatment?  Does every ruptured lumbar disc require surgery?  Does all coronary artery disease require bypass surgery?
I guess my question here would be why do these things happen? Who gives the authority? Where does the buck stop?

The bottom line may well be, that since, (with the aforementioned in mind), the co$t of current care, is unaffordable for most, out-of-pocket, the system cannot survive without a broker of sorts, for payment.  Hence...Insurance Companies.   But, as you know, they may be the root of as yet more evil.  Firstly, not everyone can afford the premiums.  If you an entrepreneur, own a small business, or self-employed in any field of endeavor (now pay attention all you musicians and artists out there),  you may not only be unable to afford insurance, but unable to obtain it in any fashion, barring being able to find coverage under a spouse or relatives' plan. 
This is a problem. A huge problem. If you are a self employed person with a family the insurance you are offered is crap. I know I've been there as well as I bet a lot of people on this site. I dont know the difference between having a company supply a plan or you co-oping with other self employed people but the plans I saw for the onesies (self employed) have never been as good as the ones I have gotten working for a larger company. Why is that?

The coverage is never all-inclusive, there are still out of pocket expenses, and the Insurance companies regulate what they will and will NOT pay for.  Medicare is one of the worst systems (yes, I know it's Gov't run, but the federal government has starved it slowly over the years, so rationing is extreme at present), in that regard.  Their reimbursements to physicians, patients and hospitals is going steadily downward each year. 
Which kills the incentive to be a doctor. Insurance companies have killed the whole medical field. Its broke and know one will step up with solid ideas on how to fix it

Finally, the legal system of malpractice in the US forces an increasingly paranoid and defensive brand of medicine to be practiced here.  Physicians will often order tests, procedures, and even surgery, for no other reason than a "C.Y.A." way of thinking.  And the costs keep going up, up, up.... So does the cost of medical malpractice insurance; a real crisis at present.  Doctors have relocated, stopped training for high risk specialties like Obstetrics (I'm talking legal risk, not medical risk), or if close to early retirement, hanging it up all together. 
I think tort reform is a solution here. Great point Eugene

Do I have any answers?   Yes, I have a few ideas.  If we are going to have a healthcare system, free of Insurance Companies and Medicare, we are going to have to pay for it.  This is not impossible, but nobody seems willing to do that.  We feel healthcare is an inalienable "right" (I think that issue alone is an item for further discussion), but don't want to, or are unable to pay for it.   In any event,  the flicker of hope for paying (yes, actually paying for care), would be dashed by the outlandishly expensive costs for care.  We would need less drugs, less tests, less procedures, and less hospitalization to make it work.   I think that it is possible, but alas, the inevitable roadblock of attorneys and patients suing doctors (the frivolous suits, not the suits rightly brought forth for charlatans, frauds, patient molesters, and other vermin with the title "doctor", but without the soul and compassion of Doctorem Medicinae).   So, unless we patients, physicians, pharmaceutical companies, and hospitals are willing to bite the bullet for a few years in order to bring affordable excellent care (but avoid overcare, and wasteful care), that we pay for OURSELVES,  we are stuck with:

Bingo..Bingo...Bingo you hit the heart of the matter with this section. The heart of the matter is patients do not really pay attention to how much health care really "Costs".  They only care about the "Co-Pay". That is a big problem.  If you could shop around for medical services I think thing would change in a big way. You would have http://www.FindYourHealthServiceCheap.com and people would start paying attention to these costs. Its almost like funny money to them.  We need to put the brakes on the greedy lawyers. Have limits to settlements instead of the greed infested settlements we have now.

2. A National or State "provided" inclusive healthcare system.   This, I can GUARANTEE you, is inevitable, in some form or other. 
This one scares me and I will tell you why. The Dems are already proposing something like this and you know as well as I do it would be a money pit. No stopping it and no slowdown and it would be pitifully run. I would want any alternative to this and I'm willing to look at anything but this

Do I think National Healthcare system is ideal?  NO.  It will be a doorway of opportunity for mediocre and rationed care, BUT everyone will get care, and there really should be no excuse for not getting excellent care.   Just don't expect all the bells and whistles, which, truth be told, are not necessary anyways.  The rich would still get their Tummy Tucks and Tushie Liposuction, by paying out of pocket (they do now).
At the most basic level this is where we will always disagree.
There is no model to look at this and say hey that works well. We only have to look at Canada and what they have to understand this is not such a good idea. I understand Eugene the uninsured is a problem. Do we throw them on the street?Certainly not but I would like some other alternatives to a National Healthcare System.

Wow I've been cutting and pasting and I'm not half through with your post but I notice at the bottom you added some incentives to "healthy people". Great idea. Give the people incentives to be skinny and to quit smoking. These things work. If you felt that it was a long range hug from Austin. I'm going through the tax deductible course "Learning to love Liberals and accepting Democrats". Thanks again for taking the time Eugene to respond. You gave me a lot to think about

--Pat