Interesting post. As you said, be it self or federal regulation, it's still regulation.

Considering the scope of the hobby now, which is much larger but poorer defined then it was 20 years ago, I'd say regulation is absolutely necessary. At the very least, it's a cut-and-dry way of keeping people personally responsible, and means that violations aren't so unprecedented that there's multi-million dollar lawsuits and clear confusion from the FAA, legislators, media, and public. You break the law, this is the charge.

If our laws were better defined and understood, it's far less likely that people will break them and argue ignorance.