There is no perfect. That's my point. The problem with your position, is it's exceptionally and extremely utopian to trust anyone in any major position of power that is human. Which is why i favor decentralizing power extensively. Regulations are very much a centralization of power. Worse, they are a form of power that is largely unchecked. You can't vote out your regulators. You can only hope those you elect do something with them (assuming they even can, because often they cannot or will not for other reasons... ie: Blackmail or personal self interest).
Governments have a monopoly on force and all through history are used to help the few at the expense of the many. Hence my beliefs that governments should not have much power at all. That society needs to be responsible for itself because if you give one person power over others they will abuse it for their own gain.
I never said it would result in perfection. But I'll tell ya, if for example hemp was completely legal and unregulated, the amount of industry that would be possible EVERYWHERE, completely decentralized - it would be unbelievable. Energy needs could be met. Material needs. Food. You name it. It's big reason the plant is illegal in the first place - it's a massive threat to mega industry that's easy to control (like for example oil drilling operations... not so easy for anyone to get started in that game).
But that doesn't happen. You can thank the law and regulation for it.