1. Uninsured coverage may be slightly more profitable than other coverages but just about every company was in the red last year for expenses and losses. No one is making bank off premium dollars. That’s part of why so many people are seeing rate increases.
2. I don’t think there is a single state where uninsured coverage is required. Several require option forms to be signed where the policyholder manually selects to reject the coverage and must sign the form. Some of that is insurance lobbying but it’s a form if you’re insistent to take it off.
3. Low dollar amount uninsured BI can duplicate med pay/pip but if you have real bills then your UMBI is going to be the only coverage to pay out for those high dollar injury claims. And as many people find out in an accident, even good health insurance will refuse to cover things related to auto accidents.

High amounts of UMBI coverage may not be right for you but there is a time and a place for them in auto insurance.