I'm going to assume you're not trolling, and you truly believe your compassion based argument against double-blind trials. I'll start out by saying that I'm sorry that my offer of a differing viewpoint seems to have been taken by you as an attack on your values and beliefs. It is not meant to be an attack, and I'm sorry to have provoked an emotional reaction in you.
I don't know how or why you came to have a strong belief against double-blind trials, but I suggest that it does not hurt to consider an alternate viewpoint, even if you are not convinced by it. This is why I suggested you look at Goldacre's book.
Anyway, it's my view that double-blind trials make the world a better and more humane place. My reasoning is that they provide us with more reliable information about the effectiveness of treatment. They fight against data distortions from the placebo effect by "blinding" the patient. They also fight against confirmation bias, sample population manipulation, cherry-picking, and other distortions by blinding the researcher to which treatment each patient is receiving. It's a two-fold data protection system.
The result is that we have more effective medical treatments through better medical data. Although perhaps a few hundred people receive the placebo treatment, millions more will benefit because we would have a better idea of which treatments are more effective. This gives doctors a more accurate view of the world, which undoubtedly helps when treating patients. This is why I see double-blind trials as having a greater benefit to the world than any negative effect that placebo treatment may have.
The patients receiving placebo knew that they may or may not receive a placebo treatment. They also knew that the actual non-placebo medicine may or may not be effective, and could even be harmful. They freely decided to be a part of the study anyway, and sometimes get paid to do so. Besides, even if they do unknowingly receive placebo, their health tends to improve anyway because they believe the placebo treatment will work.
Okay, your turn. I look forward to your response.