I agree with everything you just said.
I might add that the challenge with creating legislation in a quickly changing technology environment is the proverbial law of unintended consequences. It is generally thought of as a bad idea for the government to pick winners or losers in an emerging media, or really in any marketplace. The challenge with just about any type of legislation is that, almost by definition, it's outdated by the day it's enacted.
The beauty of self-regulation, if there's an adequate enforcement mechanism, is that it can continue to grow and morph around the innovation that's going on in the marketplace.