As far as tattoos are concerned, I don't like them (especially the big ones) but banning them would be draconian.
Absolutely, I'm somewhere to the left of green when it comes to personal liberties but liberty always comes with the price of responsibility for your own actions, many tattoos are not to my personal taste but they're a very personal thing to the owner, criticism like we've seen in this thread is, in my opinion, rather small minded.
Anyway, back on track, yes, tattoo power supplies should be medical grade isolation but I'd say the vast majority of the cheap units out there just aren't, I would find it very hard to believe you can build a medical grade device for the prices they charge (under £15 for some of the cheapest).
As far as the requirements of the PSU go, I would think regulation isn't one of the highest, the guns are most often a fairly simple armature device so current availability and limiting is most important as that determines the movement range of the needle.
Adjustment range tends to be fairly wide, fine work requires lower power so it's really about the artist getting used to their tools just as we need to get used to our soldering irons etc.