Yes we need the data to power the algorithms. The best analogy I can come up with is fuel and a car. The fuel (being the data in this analogy) only has value with a machine (the algorithm) to transform it; to transform it into kinetic energy, or light, etc.
And by the way, we are well below $7K/genome. We are looking right now around $1K and falling - http://blogs.nature.com/news/2012/01/the-1000-genome-are-we-...