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.