This ultimately is a function of education, which will get better as technical knowledge becomes more widely and freely available.
As you say, it's only a matter of time before the walled gardens start to crumble.
This is... The entire point of a government. Yes, they're flawed, but they're meant to exercise the will of the people, especially in terms of regulating entities that have outsized power vs. an individual citizen (corporations, wealthy magnates, etc).
People know what they want, and will vote with their wallets. As long as options are allowed to exist, you can trust a well informed public to gravitate towards the most optimal solution over time.
Sure, but in this case there's stacked incentives against people being able to vote with their wallets in the first place with ecosystem lock-in. The companies are incentivized to prevent people from being able to easily switch to a competitor, which is exactly why most people don't, and by and large the general populace isn't going to be savvy enough to recognize that's what's happening.
Like you said, the way you combat that is having a "well informed" public, but who's going to be responsible for informing the government? That's the entire point of the US FTC, is representing the interests of US consumers and paying attention to related issues.
> Governments are out of touch with what people need
Yes, governments are going to be slow and conservative w.r.t. what current public opinion is, because organizing large groups and institutions is difficult.
Unfortunately, the level of technical knowledge of the population is going down. People do not care or treat tech as a magic. On a higher level of education, Microsoft can rely on a cohort using Windows at school/home/university/work.
> As you say, it's only a matter of time before the walled gardens start to crumble.
Watch what Microsoft and others are doing in the acquisition space. Microsoft is buying into businesses that use their products. What are the chances of those businesses witching away from Microsoft software stack?