This is something that some of us have been saying for a long time in that regulation and gov is hindering progress. I don't think that we need to get rid of OFCOM outright as the Telco's still need a regulatory body to answer to - without one I've no doubt some sharp practices would occur.
Areas where they have got it wrong is VULA and it's about time to de-regulate all the exchanges. If an [LLU] ISP is going to enter an exchange then they would have done so long before now.
OFCOM's eagerness to promote "cheap & switch" is also wrong. The customers who switch each year are never profitable as set-up fees & modem costs have to be recouped somehow, which usually means cutting back on service. The yearly switch doesn't help promote the Good ISPs who provide decent service and don't cut corners.