Some company has to be first.
Imagine you're an entrepreneur, and you've identified a heavily regulated industry full of sclerotic companies with connections to the regulators that serve large numbers of customers extremely poorly. You believe that you can't break into the market without violating some regulations that have a strongly negative effect on product quality.
What should you do? Go to VCs and ask them to fund a decade-long lobbying campaign with a very high probability of failure in which you pour your heart and soul into getting some obscure regulation in some obscure area that nobody cares about changed, and then afterwards start a company to better serve the customer (along with everyone else who is rushing in to benefit from the lightened regulatory load)? Or try to start a company, show everyone that they regulations are dumb, make customers happy, and then force the regulators to change out of sheer embarrassment?
If we don't occasionally reward people who took the second option (and were right!), I don't think we would get safer, more ethical change, we would just get less and everyone would be worse for it. I'm obviously fine with people who break regulations and end up hurting others being punished to the full extent that the law allows, but there needs to be an escape valve for when the government has it wrong.