Then you get people paying much more money to use less-tightly-moderated space-based AI rather than heavily moderated AI.

Judge: "On what grounds?"

Defence attourney: "On whichever grounds you find most compelling"

Judge: "I have sustained your objection based on speculation..."

It’s like creating a new tv controller with fewer options.

Lobbying corrupts this a bit. However they are not lobbying to suppress private competitors only government-run competition that has no profit motive or competition. When the government runs it we still pay for it, except now people who don’t use it also pay. Also wealthy people pay a disproportionate share as compared to their use due to progressive income tax.

In theory anyone can start a company if they have a better or more efficient product or offering and get the profits instead.

Thats the rationale in a nutshell.

If AI says don't buy a subaru it's not worth the money, then Subaru pays attention and they are willing to pay money to get a better rec. Same for Univerisites. Students who see phrases like "If the degree is from brown flush it down" (ok hyperbole, but still) are going to pick different schools.

And then decide whoever used them had malicious intent?

Streaming services have a limited budget for kids content so they can’t catch em all without sacrificing other kids content. They need pokemon they need action they meed rainbows and princesses and they needs stuff for babies and toddlers.