I agree that government restrictions usually help if they're implemented well, but part of the issue is the government is benefiting from this kind of thing.
Also, most people don't actually need something like Amazon. Not to minimize the level of investment in it, but I don't see Amazon or Google as being quite the same as Bell or Standard Oil. Maybe between Google and Apple there's some kind of duopoly like that?
My impression is people don't value — either because they don't understand or minimize — things that protect privacy and anonymity. This is a standard refrain on these kinds of forums and elsewhere — "your typical person doesn't know or care about [feature X that preserves privacy, choice, and autonomy], they just want something that works and is fun". It's been belittled as unfashionable or paranoid or performative or something, when it's really something that's had short term costs that pale in comparison to the long-term costs.
I'm not saying governments don't need to be on the "right side" but I think people need to see security as involving not just encryption and so forth, but also decentralization, anonymity, demonopolization, and censorship resistance. It needs to be seen as part of the product or service benefits.
A lot of this reminds me of stuff from the 90s, when network security was ignored for awhile for customer convenience's sake. It seems really similar now, only the thing that's been ignored is like user control and privacy or something like that.
I think the thing that's surprising to me, for example, is that it takes a Super Bowl ad for people to realize that maybe there are downsides to letting a monopoly have access to video throughout the neighborhood everywhere.