> regulating this space of tech will only lead to less innovation

You might be ultimately right about this, but you certainly haven't proved it. A common theme is a large company will use its leverage to make a product that is better and cheaper than the alternatives, demolish their competition, and the sit on their laurels for the next decade, with the exception of a few updates that provide vendor specific features to encourage vendor lock-in.

In short, Occulus could become the new IE 5/6.