The government needs to be kept out of it. If insurance companies required that all instructors hold a live fire class in order to get their general liability and E&O insurance, then ALL instructors would teach live fire, no one would have a choice, that'd be set as the norm, the government could stay out of it, and everyone would be happy.
I'm a bad shot and know it. I've gone to a few shooting competitions, and would do more, but I've run out of money.