The thing is, maybe the system didn't over-react. There are still bozos out there, unfortunately. But better to pay the cost in commitees than in blood.
Since either way, we pay in blood, the question is really about finding the right balance.
The system is unbalanced by default.
Regulations pretend to "improve" this but inevitably skew the balance to the side of safety, leading to ossification, stagnation, loss of competition and lack of innovation.