The higher you turn the knob, the harder it becomes to (compliantly) do things. Also (if the regulations are working as they should), the less the things that people do produce bad side effects. But the "harder to do things" part mean that fewer things get done - fewer new products and services get created. As the knob goes higher, not all of the things that don't get done are things that the regulations are designed to prevent. Some are perfectly fine things, but the burden of proving it is too much for the single person tinkering in their apartment to ever try to turn their idea into releasable reality.