Generally I take an evolutionary view. If we accept that companies evolve through competition in markets, regulations should be designed to put selective pressures on having those values.

A regulatory moat, is in my view homologous to niches in biology. Things settle into a sort of equilibrium where evolutionary change drastically slows. The main solution to this: aggressively break up monopolies(I would argue duopolies too). Other ways this equilibrium breaks is just that the environment changes. E.g some new technological breakthrough makes older technologies obsolete. Or a natural disaster in biology, throwing the ecosystem into disarray.