Not on their transcript. However, remember that PharmCAS does not drop retaken classes; it averages grades.
While you or I may assume that, it is not necessarily true. This person's stats may be borderline, not low, or she could be a reapplicant and she's not taking the chance that she would be rejected this cycle and have to reapply. And besides, have you seen the range of GPA's and PCATs that pharmacy schools accept? I applied to the University of Minnesota last year and they accepted students with sub 3.0 GPA's. There were also accepted students with sub 30 PCAT, and U of MN is the number three pharmacy school in the US (if you believe US News).
Yes, they reflect your ACADEMIC ability. Grades, however, do not indicate the kind of pharmacist you will become. There is much more than academics involved in the day-to-day work of a pharmacist. The institutions that train pharmacists recognize this, or else being admitted would not require an interview -- they would simply select those with the highest grades. Excellent communication skills, the ability to put a nervous patient at ease, a refined sense of right and wrong, professional judgment...I believe those are all things a good pharmacist will need. You do not suddenly get them because you did well in class.
No, it isn't. People with good grades turn out to be crappy pharmacists, and those with poor grades become excellent pharmacists. It is what it is. You may not like the "coddling," and it certainly gets on my nerves sometimes, but its point is that if you have a dream you should pursue it, no matter the bumps on your way. It's America...dreaming comes with the territory.