...the worst of all worlds is a government that keeps burdensome or expensive regulations around just to make sure businesses that rely on those regulations don't suffer.
That is precisely the world you live in today. The businesses that rely on those regulations are who make the biggest contributions. That money will dry up the the politicians they support don't put those regulations into place. Obamacare is good for industry, and the fly-by-nights who know to close the doors before the cops get too close.