In theory I agree with your argument, but in practice I find it’s very often the AI and other dominant companies — often tech — that are at the root of the risk averse landscape you observe. To put it simply, major tech companies are among the greatest driving forces of that landscape because they would prefer to operate without any competition.

My point being “letting the risk adverse take risks” is not the same thing as “don’t rein in VC backed attempted monopolies”. You can do the latter without doing the former (theoretically of course; in practice doing the latter is impossible without a substantive change in the underlying incentive structure of current global society).