"Does the government need to get involved in regulating airline loyalty programs?"
No, and for several reasons. For them, it would be a gateway drug to other loyalty programs - hotels, restaurant chains, etc. Also, while I may have several issues with United's program, they do provide all the relevant information on their website about it, so I am as informed as I need to be. There are so many other things our government should be focusing on.
"It does me no injury for my neighbour to say there are 20 gods or no god. It neither picks my pocket, nor breaks my leg."
-- Thomas Jefferson