No That is like saying that outlawing a cancerous die in fruit juice but not in lemonade lead to unhealthier diet because lemonades were exempted and remained exempted even when it became obvious that there was a huge loophole.

You say, the problem was that they outlawed that cancerous substance in fruit juice, rather than that the problem was that authorities failed to include lemonades in that ban and insisted on not expanding it either. That is not the same because your position implies one should not ban that cancerous substance because that only pushes lemonade sales.

The problem is not too much regulation it is deleberitely or by incompetence, too little regulation (vast exemptions)