Nitro has no morals and doesn't care, but it was the NW's fault for knowing who they were dealing with and not immediately removing him from play when they were in a neighborhood. Looking at that and deciding that regulation would be required is fair.
Tony went too far, he knew it was too far, he thought it would be worth it because it would quickly create his ideal future of organized heroes with a free off-world prison for villains, he then found out it was not personally worth it, and then he later suffered even more severely for it as what he worked for was compromised. It's a big arc that is kickstarted by his established history as a big picture thinker who would take matters into his own hands to solve a perceived problem, even if it costs him in the present, even if it costs him his friendships. But he didn't anticipate it would literally cost him friends.