In terms of what is best for Bitcoin, I don't see how regulation helps. Altcoins already cannot compete against Bitcoin in a free and open market.

I think it is better for Bitcoin that poor ideas be given the chance to die of their own volition. Nobody really talks about increasing the blocksize anymore because that idea was trialed in the free market and culminated in the failure of Bcash, BSV, et al. Similarly I think it would be preferable for Ethereum to collapse under its own weight, rather than getting Gensler'd, so we have irrefutable empirical proof that PoS is a waste of time.