First and foremost, this post is about the author's experiences talking to a bunch of libertarians at AEI. It sounds like those folks were dismissive of important left-leaning arguments, and generally annoying to be around. That's a shame, and no amount of the-free-market-being-awesome is going to make the author's experience anything other than a bad memory.
So with the caveat that I'd always want to acknowledge that up front before I started playing with ideas, here goes. There's a very common mistake that pro-regulation people make when they think about markets that don't exist yet. The steps go something like this.
- consider the way something works right now
- change one part of it to resemble a market
- observe that it wouldn't work very well