I have to disagree with your conclusion that the definition of health is a theoretical issue. If you're determined to remediate a range of health problems with finite financial resources -- especially public financial resources -- I don't see how you can do much without setting and prioritizing some objectives and desired outcomes. When you try to set objectives and priorities you inevitably come back to needing a consensus about the question, "Hey, what the heck do we mean by health, anyway?"
After Barack Obama's call last night for healthcare reform in the US -- which spends a huge amount of money but evidently satifies no one -- we're going to see a very interesting exercise in setting some priorities. Or not. Maybe we're just going to continue to try to stretch a rubber sheet of resources over everything and everybody.