The Federal government doesn't make rules just for the sake of having something to do. Aviation in particular is a complex and risky pursuit, and having a single set of rules has been a huge commercial and safety advantage for the US. I shudder to think what air travel would be like if there were 50+ different state regulators. Also, bear in mind that things like FAA rules are not drawn up in a vacuum, but with the participation of commercial aviators from small to large. My impression from talking to people who pilot planes is that the FAA is one of the better-functioning parts of the federal government, along with the NTSB.

You don't know the federal government very well then. It is _exactly_ why they do it. It is the sole reason why our government is deemed to have been "productive" by the number of laws it passes. Because the government is not a market governed by scarcity, make work and busy work is exactly what keeps it busy and speciously relevant and necessary.

I think we do just fine not changing regulations too quickly. The banking industry worked smoothly until we tinkered with regulations starting in the 90s. The Internet was private enough until the Patriot Act. Also, anyone in a regulated industry can tell you, regulations change every year (or more often) and many resources are poured into just staying compliant.