Oz I agree with everything you said however I am afraid that when it comes down to the US government they will screw it up. I fear that they will tax online poker to the point where for everyday people will not be able to grind out a small profit for their hobby or that their hobby will not loose them money directly but will raise their tax rate costing them thousands... So at that point does it make sense to play online or to go underground and play live home games?
Again I agree that regulations are important, players should pay their taxes, and that the government should receive revenue for services that they provide in regards to online gaming. However, in the current political climit, with budget shortfalls, and despiration to find revenue streams to make big Government financially solvent. I think they will find a way to screw this one up.
Fundamentally as well Poker is a game where you prey on your opponents weakness. You profit from other peoples mistakes (Very similar to Wallstreet, however WS has the benifit of helping companies receive capital vs. poker is entertainment). Setting up limits and regulations are good for the bad player, addicted player, and very well likely society as a whole but the game may suffer. If you regulate peoples losses you also will be caping peoples winnings and in turn may negativly impact the game. (I am playing devils advacate here a little but theoretically I think has a point)