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You already have to register your drone after purchase.

You only need to register with the FAA for drones that weigh over 250g.

https://www.faa.gov/uas/getting_started/register_drone/

You only need to register knives longer than 2".

is still an absolutely absurd imposition.

Not absurd at all. There are good reasons for it. People don't throw knives outside in random directions—nor do they "malfunction" in the way an electronic device can. Nor do knives require a manual to understand how to use them.

At some point, a line does need to be drawn. Drones can be dangerous in unpredictable ways, outside of the control of the operator.

No you don't. You were required to register once as an operator, but the same ID number can be placed on any number of drones.

I have been building & flying for about 6 years now, personally I don't bother with any of this stuff. Instead I just follow what should be common sense rules and have yet to have any issues.

more likely it's so there's a legal ability to prevent someone from flying drones around if they are causing problems

How Orwellian /s