I think you are absolutely right.
We are entering an era where individuals have unprecedented access to information and have a much greater ability to innovate. However, go ahead and try to do that and see how far you get.
As soon as you start to make any kind of money with something, the IRS will consider your little venture to be a business and you will have to pay self-employment taxes (that is, all the taxes you would normally pay if you worked for someone else PLUS the employer-paid portions). If, despite that and all the hoops you have to jump through to make your business legal, you still manage to grow successfully, you will have to hire employees (paying more taxes, more regulations, etc).
If you STILL have the gall to be successful, why we'll show you! We'll just raise your taxes! Anyone making over $250k a year (that's enough for a business to hire, what, one or two employees?) is rich and needs to pay more!
Ok, ok. I'm a little frustrated at how hard it is to start a business. I guess it doesn't help that I live in New York state.