>Or, more specifically, they should be regulated so that non-free software licenses are illegal or severely restricted.
I think it is OK to just not have copyrights (and also not have patents). And then, there is no non-free software licenses because it is not copyright, so even if they write them they do not have any legal meaning.
Stallman's idea, that practical works you can freely use/modify/distribute/etc but artistic works it is permitted to be a limited copyright (only a few years), might also work, I think (although I am not entirely sure; I think it is probably simpler to just abolish copyright entirely).
I have also seen a suggestion to tax copyright so that you have to pay a annual tax, and can copyright it for up to ten years, but anyone who pays 100 times the tax rate of copyright can force it into the public domain early. I think that can do (and if the government likes to earn money, it can help them too), but still perhaps the copyright should not be applicable for practical works, which instead are freely usable. (Some works may be hybrid, and that is more difficult. One idea is if you can separate the parts easily enough then you can copyright the artistic parts, but if you cannot then it is forced public domain; making the source code of a computer game available may be one way to do, so that you will want to release the source codes anyways in order that you may copyright the artistic non-practical-works of them.)
But whether or not is copyright, there should be a requirement of warning label on commercial products that use DRM, and there should not be laws to restrict circumventing them on your own copies of works/devices.