"Competition" isn't a cure-all any more than "regulation" is. Google got big because they competed well with the alternatives at the time.
Long story short, we need both, but we also need to figure out how to keep regulations moving forward instead of stagnating.
We've made cars quite safe in this regard; I suspect there's more wiggle room to drop deaths with crash avoidance at this point. Backup cameras (now mandated by regulation), pedestrian detection, automatic breaking, lane change warnings, etc.
Exactly.
Modern cars are optimized for "the tests" occasionally to the point of absurdity. As in certain systems get de-tuned (so to speak) so they are completely and totally used up at whatever the max test speed is because that's what makes the car look best in the benchmarks.
If we modernized the tests high speed crashes would be more survivable and low speed crashes would be less costly.
It's not all government's fault though. Society has a very unhealthy relationship with risk. If you make a quip about how crumple zones shouldn't be tuned to activate in parking lot collisions you are instantly inundated with idiots that don't understand that a stiff neck in a 10mph hit could be what makes a 60mph hit survivable at all.
Or they're pedestrians who don't want to be cut in half in a parking lot. Car-on-car isn't the only thing in consideration here.