The government doesn't have the average person's well being in mind either.

Government bureaucrats (and especially politicians) only care about their own power and position....just like everyone else.

Putting too much power into the hands of any single group, or single individual, is a certain recipe for tyranny. There is no perfect solution, and anyone who claims to have one is just angling to increase their own power and position.

The best we can hope for is a society in which various factions and groups are engaged in a Mexican standoff, and no one is too big for their britches.

False dilemma. The choice is not between big government regulation on one hand, and criminal empires on the other. There are many points in between these two extremes.