It's not naivete/goodness, this is totally aligned with their playbook of trying to get AI to be heavily regulated.
The point of regulation is to kill competitors and prevent private individuals from having unfettered access.
This is the most "I get both sides" issue in my mind these days. I am still not sure where I fall, or if there is even a correct position with which to agree. It really seems like there are no good options.
On the one hand, if all knowledge work ended up in two dude's hands, that is really bad. On the other hand, if every surviving child victim of war (US, RU, IL, CN, whatever) has access to the knowledge to make custom viruses for a few grand, that is also really bad.