In the context of limited time and information when making decisions - i.e. real life - removing an option that's (on average) a mistake can make the average ch

In the context of limited time and information when making decisions - i.e. real life - removing an option that's (on average) a mistake can make the average chooser better off. That's obvious; it's why we have guardrails on the sides of highways. The question is utilitarian, not absolute. It depends on the specifics of the regulation. Furthermore you don't have to think that the regulators are elite - anyone can make a better decision in the abstract than they can in the heat of the moment.