Well for regulation to be truly effective it needs to be independently funded and organised. Which usually means public funding etc.
But this isn't exactly a top priority for policy makers, so bottom up / self regulation is where it will have to start.
We'd just started discussing this on the other thread - I was pointing out that self regulation of the traditional press is a joke, and intentionally so. Although they trot out a line of freedom of the press, its actually because those powerful media companies don't want to be properly regulated as it would reign in their power and influence.
But it is true that in other sectors, bottom up pressure + responses from those powerful and influential in a sector can bring about change.
I think some of the big bloggers could facilitate this, by getting together, consulting opinion, developing some common standards and guidelines, following them themselves etc.
Like the 'Fair trade' logo, there could be a shorthand which bloggers following that approach display on their site - it would / should help them build an audience, and also help smaller and newer bloggers withstand the pressure.
E.g. I like Sali Hughes and wasn't v surprised by what she set out in her response post - though I'd like her to explain more about how her blog is funded and whether it is a marketing - so costs covered - or revenue earning activity for her. But for newer, smaller, younger bloggers it can be harder to hold out against the pressure. A set of agreed standards they could choose to sign up with should help them too.