I'm not sure I agree with you, but anyway, that deal fell through because of regulation. But observing that one aspect of regulation works, is hardly an argument that deregulation is bad.
> "cost of going public"
Other comments in this thread (http://news.ycombinator.com/item?id=406433) suggests that going public means slightly more than digitizing documents. No SAAS, no IM, no iTunes, more lawyers, more accountants. But, arguing "regulation is not hurting that much" is hardly an argument that deregulation is hurting more.