Ahhh... the all-mighty space program. Know those space shuttles they retired a year or so ago? They were based on 80286 technology. Do you even know what an 80286 is? It's NASA leading the way.
So? Do you think that the Mercury, Gemini, and Apollo programs were running at a similar level of technical obsolescence?
Of course they'd improve their products and services without government intervention. Why is a single Prius on the road? Why does organic food even exist? What about row after row of items labeled "all natural" and "fat free"? Why is antibiotic meat and free range chicken even available? I can name billions and billions of allegedly green/clean/health industries that exist even though the government hasn't mandated their existence.
Those are new products that did not supplant other, less "green" options. And they are still minority "feel good" stuff, not mainstream.
Detroit was dragged kicking and screaming with every safety and emissions standard. We had industrial waste being pumped straight into the river, and up the smokestack, before the EPA. Regulation has played an important role in improving the quality of our workplaces and our lives. Perhaps you're just too young to remember what things were like before...