I think this depends on the economic model and how to get win-win between different stakeholders. FCC in the US, for example, historically has been a strong supporter of network neutrality, unlicensed WiFi, and more competition in the communication service business. Sometimes these regulatory agencies want to stimulate innovation and thus economic growth in their own country, If blockchain and decentralization is the future engine of growth, I trust some of the wiser government agencies will embrace projects like NKN.
On the other hand, market will prove if a new technological revolution is successful or not. The typical example is that social APP like WhatsApp and WeChat are replacing the traditional phone call and SMS market. Wise regulations still play a critical role in stimulating the innovation economy.