[forgottenpass]

How does one possibly defend this?

Well, it typically comes across like this (if you notice depends on if you like the company):

Their disruptive innovation is just scaring the shit out of those dinosaurs down at City Hall. Local government are stupid for protecting citizenry financially and/or setting minimum standards for a service. It doesn't matter if the service model is the kind of things that the law is meant to protect or genuinely a case not considered when drafting the law. All valley business models are golden, market success makes them beyond reproach!