Usually, the notion that the business is "outmoded" is describing one that cannot survive without supporting regulation and that they may not survive even with

Usually, the notion that the business is "outmoded" is describing one that cannot survive without supporting regulation and that they may not survive even with it due to inherent business problems. Namely, "we can't stop people from sharing stuff unless we control everyone's computer" (or something close to that). That's not really analogous to a hypothetical web-based business with a security hole. If anything, natural selection would then favor those businesses without such flaws, rather than seeing the industry itself wiped out. One might think that it already has, in that I remember the bad old days of CGI programs written in C. (I'm sure there's someone out there who could do that securely, but...)