There are a lot of contexts floating around, but you are meaning something like how would the people attain a state where they can buy something almost exactly like the iPhone, but with less restrictions or perhaps some different features, without regulation?

Well, how would they do that with regulation? Have the government (i.e. the people) tell Apple remove restrictions/add features else they can no longer sell the iPhone/operate a business at all, praying that they comply – and if they don't you no longer can buy an iPhone? –– Which is exactly the same as the people (i.e. government) telling Apple to remove restrictions/add features else they will no longer buy iPhones/Apple products, praying that they comply – and if they don't you no longer can buy an iPhone. That can be done right now without regulation, if the will is there.

But the will isn't there. Nobody outside of tech communities ever thinks about this, and the comparatively small number of tech enthusiasts who do, do not form a democracy. If they people don't have the will, they won't do anything.