The strict technical regulations are in place for two main reasons:
1. To allow teams with smaller budgets to compete.
2. To focus innovation away from simply making bigger, more powerful engines with computers managing every facet of driver input and car output. That kind of technology will (and currently is) making it's way into roadcars anyway, it doesn't need the help of F1. F1 enforces constraints in the usual suspects (engines, driver assists, ECU, tyres, etc.) which pushes engineers to come up with genuinely new and creative approaches to making cars better and faster. This is all done within the competitive arena of sport. It's actually quite a smart way to bring about a particular type of innovation (I'm trying not to say "out-of-the-box thinking") that may not necessarily happen naturally but may still eventually make it's way into roadcars.