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Psychology absolutely takes into account the greater social context. Though in clinical psychology, we work with mainly individuals, we would be terrible practitioners if we didn't recognize and work with the macro level interactions of social forces. In my undergrad years, I took a few sociology courses (I was only a couple courses short of a minor) and I feel they compliment my current studies in psychology quite well.
As for the medical model, it doesn't specifically detail the exact symptomology of every peroson with mental illness. Then again, it isn't supposed to. The diagnostic model is a way for researchers and practitioners to have a common language so that communication between other professionals is made a bit easier. Though the individuals differ, there are commonalities, and identifying these helps in research and treatment. No, the system isn't perfect, but that's why research and revisions are always underway to make improvements, just like in any science.
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