Good. Without their careful and considered work, the US skies would experience it's own tragedy of the commons. There's a reason air travel is so damn safe, and it's not because private companies were left to their own devices.
"The Air Commerce Act of May 20, 1926, is the cornerstone of the U.S. federal government's regulation of civil aviation. This landmark legislation was passed at the urging of the aviation industry, whose leaders believed the airplane could not reach its full commercial potential without federal action to improve and maintain safety standards. "
Maybe people were smarter in the '20s, maybe they were hoping for regulatory capture? Not sure, but obviously it's a good thing...
That quote does not disagree with OP at all. It says that the aviation industry itself determined that they should not be "left to their own devices" (OP's words) and asked for federal regulation.
