The mistake in your argument is assuming people are good; they aren't, without oversight innovation isn't the result, scams are, by the truck load. The FDA exists to protect unwitting consumers from bad people, not to spur innovation. For every innovator freed by lack of regulation thousands of con men exist that'll flood the market with crap that hurts people, far more than any possible innovation is likely to save. Lessening risk is far more important than not stifling innovation because the simple indisputable fact is that bad people vastly outnumber innovative people.