Increase fuel economy -> Introduce fuel economy standards -> Economic cars practically phased out in favour of guzzling "trucks" that are exempt from fuel economy standards -> Worse fuel economy.
or
Protect the children -> Criminalize activites that might in any way cause an increase in risk to children -> Best to just keep them indoors playing with electronic gadgets -> Increased rates of obesity/depression etc -> Children worse off.
As the article itself says: Hold big tech accountable -> Introduce rules so hard to comply with that only big tech will be able to comply -> Big tech goes on, but indie tech forced offline.
That is like saying "when we write software there are bugs, so rather than fix them, we should never write software again".
Your second example is ascribing to regulation something that goes way beyond regulation.