I agree with all of that. Just like any governance, there is potential for stupidity and abuse, usually both. But it is pretty clear that abuse can occur on the production side too with inappropriate volumes being withdrawn.
Reasonableness should be the order of the day and there isn't a whole lot of listening to reason right now from people that are listening to propaganda and not the science. It is understandable to a degree because like many things, a bumper sticker slogan is easier to understand than the complex science, not to mention the legal issues and rights of ownership that blanket the whole mess.
I will say that some of the protesting of the permits comes from agricultural irrigators who ironically, didn't seem to have the same level concern for their neighbor's wells when they began pumping as they are expressing for their own wells now. Same for the City of Sinton and their wells.
The best way to keep evil men from wielding great power is to not create great power in the first place.