What's the problem here? None of this stuff affects people who invest. Arguably, better executing algorithm adds value to investors. So who cares if short term traders are impacted? Are the short term traders' welfare more important than the "machines"? What about the machines' designers' welfare? Why are they subservient to that of a scalper?
Again, flash crashing destroys confidence in the market. Machines do not input confidence, while other market participants do. Those people are leaving, volume is decreasing and only the Fed can backstop the market on a daily basis now.