Yes. All forms of artificial scarcity must be declared to be literally illegal. Diamonds are nothing, we've got the entire intellectual property industry to contend with.
This was tried and we ended up with intellectual property rights because encouraging the creation of works was more important than having zero/poor quality works but a free for all.
No it was never really tried. The default was no IP rights and the invention of the printing press and moveable type led to what is now IP laws. There have been zero trials of abolishing IP law in a modern information society.