I don’t really care if an algorithm can tell someone why it concluded x about me. There are some x for which I don’t want any algorithm concluding about me and there isn’t any context that could be provided that would justify it or make me comfortable with it.
You have a few issues here with science and its application in society.
If I develop an application that can tell if you're gay or not, is it my imperative to report you to the authorities so you can be rounded up and disposed of?
I say you can very well develop such applications if you want to, using them especially against society at large is a privilege afforded to you, and one that can be revoked. Lots of other pseudo-scientific bullshit has been hoisted on the public such as eugenics causing massive amounts of damage, and i'm not looking for the next generation of this that will trend the same way.
What does it mean to use something "against society"? If I run a service that analyses images that people upload and people have the lawful right to upload these images, that's my business. Neither you nor anyone else gets to have a say in private transactions between me and someone else no matter what form of analysis of a being offered. My algorithms do not require your approval.
I broadcast my face expression every time I walk outside. I have no right to tell other people they can't look at my face and draw conclusions about me.