The public are happy, because they believe that the regulator is strict, conservative and powerful.
That is indeed the case, and in many other industries also. The public are then rightly horrified, "how could that be allowed to happen?" after an accident: be it transport or a power station. The public have blind faith in the authorities because they are in ignorance and the authorities blow their own trumpets about how 'on the ball' they are in over sight and regulation. I think events at The Met one the past few years have shown the truth of that naivety. If it can happen there is can certainly happen in the 'old boys club' of other authorities.
During 35 years of operation under 4 different XAA's I've seen just how flexible and blind eyed they can be with the operators: until I forget a signature some flight paperwork or other and then the wroth of almighty descends in a torrent of tut tut!