Earlier quoted context omitted.
Have you ever tried to draft regulation? Even tried to capture everything that could possibly go wrong or be harmful, even unexpectedly and inadvertently? All while knowing that everything you forget will be a “loophole” for the thousands or millions of people coming under the regulations you drafted in the future. And worse if you leave loopholes people will be hurt and then blame the very government trying to creat…
Right. The rational way to write regulations is to ban everything. Which to me shows that "the regulatory state" is not the right model.
There will always be a regulatory state, the question is what is the authority that imposes the regulation; is it a democratic government, a private company that institutes policy and terms of service, a gang that rules by force and violence. No society I know of has existed without a code of rules and obligations, and America is actually really amazingly effective.