I see your point, and concede that it true, but I worked for a CC bank and that's not how they were successful. It's not that I think they have a moral obligation to people to protect them from themselves, it's more that I think it's foolish long term to make bad loans.
But risk is where the money is.
I am not a big regulations or protecting people from themselves person at all as long as things are disclosed up front, so I am a bit torn on MAKING them do that with the cosigner. I would rather see the companies have to pay the price for being stupid by going out of business. However I see no problem with making sure they warn people of everything, and think everything should be disclosed in plain language. I feel that if that is done, people have nothing to whine about when they get into trouble with the CCs. Bankruptcy is pretty easy to file for/get and it sucks for stiffed creditors.