You're committing a critical fallacy here, you're making it sound like this has to be a "virtually non-existent regulation" situation or a circumstance like Zen

You're committing a critical fallacy here, you're making it sound like this has to be a "virtually non-existent regulation" situation or a circumstance like Zen Magnets went through. The CPSC and related regulators CAN regulate dangerous stuff without making idiotic wars on toy magnets that undermine their entire existence. Seriously. They can fulfill their entire function, standards of error for mistakes included, without EVER committing such heinously overregulatory acts as this - in fact, it's important to their continued existence that they DO NOT overregulate this badly (because when they do, their opponents gain substantial ammunition to eventually disband/defang them).