Another option would be to have something like a hybrid of the unlicensed and HAM bands with more liberal output power restrictions than unlicensed spectrum where you have to pass a test and get a proper (inexpensive) license to use the band, but you can do more-or-less whatever you want within the band as long as long as you identify your station, stay within output power limits, and don't intentionally interfere with anyone.
Surely, increasing unlicensed spectrum would alleviate this by providing for more channels...
It's not like everything will suddenly stop working. We'd just have a constant war of A vs B vs C vs ... For a similar situation see the internet's buffer bloat. Everyone goes "how do we make the connection faster? bigger buffers!" and now we all have crazy buffer sizes on each node in path and all get crappy connections because of it. We do sabotage ourselves all the time in technology.
Companies that spend time sabotaging each other, rather than focusing on delivering service to their clients, deserve to die. And, in any sane economy, they will.
Can you bring up some good examples of that? We've got the mentioned loudness war, patent trolls, insurance companies with race to the bottom, people destroying the earth right now and who will keep ignoring global warming where it's profitable, antibiotic resistance via over-prescription, internet buffer bloat, software size bloat, etc.
I love the idealistic view of the sane economy, but no, that's so not how markets work at the moment. Especially in this case - how exactly would any non-war-mongering company stay in business if the name of the game is "how wide/loud can you transmit"? It's not that companies are sabotaging each other. It's that if companies can make a better product on an unregulated RF market, they will. This will most likely get into someone else's way and those in turn will have to upgrade as well. There's only constant improvement on both sides.
If you're able to find any, you can compare the output spectrum from any RF toy that's FCC registered and one that's not. Guess which one bleeds noise on a wider spectrum around it's intended frequency.