I agree with your general premise it's exploiting loneliness and the clients aren't always engaging in these things in a healthy way (see also, parasocial relationships with streamers, etc). But I'm not sure if there is any targeted regulation that would actually achieve harm reduction. Banning it will just send it underground and make it more dangerous for the participants, and harder for people to seek help. Maybe tax it and then re-invest the proceeds into the mental health?