Precisely this. Especially in a market with a humongous appetite for development like the Bay Area, if you unleash the flood gates, you're going to get a lot of charlatans who cut dangerous corners, and they will mysteriously disappear before they will be held to account. In the meantime, their victims will pay the price, either in blood or in the financial losses incurred from losing property that must be destroyed because it's unsafe.

Regulation isn't so much the problem as regulation which is slow to the point where it effectively kills development. There is a balance.