Of course, the government thinks otherwise. Genetic discrimination is no more valid than racial discrimination, because genetics do not give any indication of the present state of an individual. To simplify, genes are the blueprint from which people's bodies are made, and our body delimits our capacities. You cannot evaluate somebody's capacities from genetics any more than you can do so from his race. The point is that these various concerns are perfectly normal.
All technologies have their flip side.
However, stable long-term progress in medecine and society in general can be achieved thru the use of gene manipulation. I also say society because social engineering and genetic engineering go hand in hand. Therefore it follows that changing the human genetic pattern has the potential to change society dramatically, hence the relation between social engineering and genetic engineering. It is obvious that the ultimate goal of a new, improved human species is extremely desirable. However, the interim period necessary to implement it may not be as desirable, as is the case for all new technologies.