Morally corrupt innovations are the easiest innovations to create

I see it as capitalism eating itself. When some field is rather streamlined and mature and optimized cutting corners is where to increase profits.

An analogy would be brands profiting from their good brand image. I.e. they decrease quality to change brand loyalty into dollars.

"The issue I see with the whole regulation debate is a complete lack of context from politicians and decision-makers. Perhaps it is by design?"

Go attend some party meetings if you want the context. Usually the reasoning is clear. I don't know why people expect politicians to be able to reach out to them unilaterally. The participation rate in politics is too low nowadays for gossip to spread.