I don't think the end result would be clever and resourceful people being "afraid" of regulatory backlash if they screw up. Not if we demand a reform that is careful to avoid such an outcome, that is.
The way I see it, corporate systems around the world are being governed in such a way that often leads to directly rewarding bad behavior.
Humans can innovate at incredibly complicated levels. We have plenty of examples of that. I think we just need to find ways to ensure that the resulting organisations don't grow to such a size that they have an entire level of executive leadership that seeks to relentlessly drive profits at the cost of all else.
Maybe that means we as a species actually move a little bit slower sometimes? Would that be so bad? I'm probably suffering some extreme cognitive bias, but I really think that we'd be better off if that were the case.