You also can't simply assume that an existing solution on the market is not the best already.
I mean, who told us that smartphones with user-replaceable batteries are better than smartphones that are 0.5 mm thinner because their batteries are non-replaceable? The same people who want to ban encryption?
> Regulatory interventions in the market can then serve as an effective lever to help the market break free from that situation.
No, they can't. Regulatory processes are shaped by the same incentives as market ones. It's just that the tools for achieving goals are different. And because of this, it is always moving in the opposite direction from "help the market".
> I’m supposed to just shut up and accept that there isn’t enough demand for my quirky, special requests?
Generally speaking, yes, it is a market ideology. But what's not clear about it? People adhere to it not because they like when unqualified masses, with their consumer behavior, encourage all sorts of nasty things in mass-market products. It's simply better than when a regulatory body implements its "quirky, special requests" at the expense of everyone else.