Can we stop referring to business models which choose to simply skirt or ignore the law as "innovation"? I'm pretty sure the Mafia has been doing that for decades.
Sure, that's true
But what's also true is that we will continue to see things -- things that are perfectly acceptable to society, or at least will come to be that way -- that are out of sync with current laws and regulations. So the question is how do we get there. Clearly every innovation is not positive, but many are, and we want to give ourselves the opportunity to try things and learn from them.