Right now: Are you allowed to hack code in your living room? Can your buddies come over and help you out? Can you host your business on a server in your garage? Can you use Lisp? Can you build a mashup and earn revenue from widgets other people produce?
What if government regulations told you this: * All code must be written in government-certified office space. * All code must be written by professional degreed programmers hired at a minimum government-defined wage. * All code must be Java. * Hosting must be done by government-certified shared hosting providers. * Your application must support at least 100k simultaneous users.
Would you be happy with that sort of regulation? Would you bother with a startup? Would you accept it all on the premise that it keeps your children safe from evil unregulated websites?
Or do you prefer to have a choice?