I don’t think the term “well-regulated” meant government controlled. Rather, a well-regulated militia is something beyond a ragtag assemblage of individuals but instead one that has enough experience and skill that it can be mustered into a combat unit of whatever size (squad, platoon or company) to ensure the security of a free state.
That's correct. When I was a kid there was a clock in the school office which was named the "Regulator", because it was designed to do its job well, not because anybody actually expected the clock to be in control.