Agreed, but quality regulations/assurance should only cost a few $/oz for a large batch. I found an NIH article with some data. Testing small samples under 8 lbs cost more, up to $138/lb ($8/oz).The problem isn't "regulation bad". Some regulation is good. Regulations that require whatever's on the product's label to be accurate are good.
IMO it's best to avoid the black market and let cannabis sell legally, so that quality can be assured. Regulations that inhibit the free market, in an effort to multiply the price to the end user, end up creating the unregulated black market with untested weed.
"Low prices are great for consumers. But in one of those recent documentaries about the Cali weed market, small growers complained that the wholesale price of flower is now so low that they can't make a profit." I care most about the first sentence above, consumers are regular people, growers who can't make a profit shouldn't be.