It's shocking to me that he was aware of it and yet considered it an unrelated defect that can be individually corrected, and not a flaw that blows the entire idea wide open. To me it seems that this outcome was unavoidable and that this is the equilibrium his system will settle into earlier or later. Opposing the concentration of power is harder than making it happen. Even strong regulations only need to spring one leak somewhere for them to get in and get the ball slowly rolling. It's a ratchet. If he knew about this, then his ideology was like boarding an already slowly sinking ship and hoping someone would just keep scooping out the water and throwing it overboard at a sufficient pace forever.