Anybody that thinks no regulation is needed should look no further than this place.  I've been around here since dirt and to be honest, I would put more faith in having some of that dirt prepare my tax return than some of the folks that have posted questions here.  Some of those preparers are just green and are looking for a little help but some of the other preparers are just plain dangerous.  A barber needs a license to cut hair but they don't need anything other than some blank forms or a computer to go crank out tax returns in their spare time.

I also believe there should be some oversite, as you said some preparers are "just plain dangerous. I just hope the IRS doesn't go fee nuts.  

There is already the back-door regulation of everyone who signs up for electronic filing and agrees that IRS can change the rules any time it wants.  

When unregulated preparers are outlawed, only outlaws will be unregulated preparers.