There are several problems with regulation: a) Whack-a-mole, new ideas and business models arise faster than the speed of government. b) Regulatory capture, like what happened to our banking regulations. c) More often than not, penalties are captured by the regulator, but compensation is not made to the injured parties. d) International law / trade agreement complications. I'm sure there are many more.
If manufacturers knew they'd be on the hook for damages in a dollar-to-dollar way, they'd put more engineering into their work, they would price it accordingly, and personally I'd be fine with that.