So can automobiles. Or any ballistic projectile. This has much less to do with rocketry than with government presumption.
[Backing away slowly...] Ask the FAA. They do it 24/7.
That they do it does not mean they SHOULD or have a RIGHT to do it.
Apprently you are of the school that believes that what is is right, and that the government has the right to regulate whatever it decides it has the right to regulate.
I'm more inclined to question that presumption.
Do you delude yourself that those things are unregulated? And do you think that it's possible for an exploding car, or an inert ballistic projectile, to do anywhere near the damage of an exploding or falling launch vehicle?
If you want to live in a fantasy world in which there should be zero government regulation of any form of transportation, fine, but out here in the real world, where it's going to continue to do so, the case for regulating launch systems is greater than that for any other form of transportation.
That points out one of the really big problems these days. The Comprehensive Theory of the State has not been developed. There have been a handfull of partial attempts dating back to the 18th cent., but we still have no scolarly, philosophically correct, thorough and complete Theory. It is something that needs doing, and until it is done we are capable of doing no more than flinging incomprehensible slogans at each other.