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The reason "upzoning" and other YIMBY initatives look like deregulation is that they're often promoted piecemeal. The solution is regionalism. Things look very different when upzoning is paired with reconfigured regional land use and housing regulation, as it always should be.
Loosened land use restrictions in the urban core should be accompanied by increased land use restrictions at the urban periphery (which is all-but-unregulated in many places).
In that context you're actually strengthening the regulatory regime: changing its geographic focus (from the interior and exterior), its jurisdictional breadth (from municipalities to large entities) and its political constituency (from parochial interests to regional interests).
In short: a belief that squabbling localities are not the best source of regulation, nor the interests meant to be served by regulation, is not an objection to principle of regulation itself.
