Its a direction worth aiming for. Its mostly the problem that it makes most things commercially not viable if pushed to that extreme
Discussion
It is not just commercial viability, some things simply requires either huge scale which is easy to regulate, or actually requires regulation to guard people's rights.
Not everything can be solved with cryptoeconomics or whatever... sometimes I just want to trust the food I am eating.
I get what you are trying to say, tho food in this case is a poor example because thw regulated part of it makes it horrible.
Regulation and trust are not friends, they are enemies. The problem is that trust is centralizing (and a great scaling technology) which leads to easier enforcement of coersion.
I trust the farmer I buy the meat and eggs from, not the institutions trying to tell me that those cows need more antibiotics that a hooker with no condoms.