First of, I apologize for any lack of clarity - I'm way too tired to be thinking, let alone posting.
Secong, I just used the RIAA as an example a big nasty megacorp. Substitute whatever. My point wasn't about the **AA, or even any other corporate conglomerate. It's this: the goverment is (at least in theory) us, the people. It's in place to protect the minority from the tyranny of the majority. But also, and more imoprtant in this context: the purpose of government (as perscribed to us by modern political liberal tradition) is to protect the majority from the abuses of the few. Without regulation, we're screwed. With too much regulation, we're screwed. Our only hope is to keep fighting to keep the middle ground.
And yes, unfortunately I do believe we're heading in the direction you're predicting. It's sad, but it's true. Fact is, it's *always* true. Big lords/industrialists/corporations(/substitute whatever) will always try and gain as much power over the populace as it can, down to slavery if possible (been there, done that). Government will *always* try to control to the population, too. Down to slavery, if possible. It's nothing new. Thge solution isn't to abolish regulations. It's to balance out the powers in the most beneficial way. It's tricky, and it requires government regulation. And here my verbal diahorrea stops because I run out of words.
Again, sorry for the incomrehensibleness. (I doubt I made much sense at all.)