Why wouldn't you think that a doctor practicing without a licence will have that position threatened by a police state? The regulation is there for a reason; to protect the consumer from being able to buy competitive healthcare. It does zero to protect them from unscrupulous doctors.

If a license for anything improves the behaviour and motivations of those that are deemed by a state to need one, then it is only in the acquiring and maintenance of the license. If you could magically make the process of getting and keeping the license the exact same thing as behaving responsibly while using it, then the arguments in favor would make sense. What we all live under is simply a thinly veiled protection racket.