It’s all of those things, plus a big one not mentioned: the way airplanes are maintained means that there has been a constantly growing used supply of aircraft competing against new ones.
Where regulations come in is that they prevented the light aircraft industry from innovating and making the used fleet obsolete. Auto manufacturers introduce new models and upgrades constantly to degrade the value of used cars and keep people wanting to buy the latest thing. In aviation that was impossible because a type certificate was incredibly expensive and time consuming to attain, and even the assembly line had to be fixed from change and approved. If a change couldn’t be done through an STC, it wasn’t done.
Type certificates are so valuable that when aircraft makers go bankrupt their type certificates are sold on the market and new companies form to make the same aircraft rather than design one of their own. The Grumman Cheetah started life being built by American Aviation. They went under, and the type certificate and tooling was sold to Grumman. When Grumman-American failed, Gulfstream bought the type certificate and tooling and tried to sell them. That didn’t work out, so a new company, American General formed to buy the TC and tooling and make them. They failed as well, but then Tiger aircraft did the same.
The old tooling and Type Certificate were so valuable because getting new ones for a new aircraft under the old regs was damned near impossible. Porsche just about went bankrupt just trying to certify a new type of engine.
The result was that a Cessna 172 from 1970 looks and flies almost identically to one built in 2022. And with maintenance being done the way it is, it is just as reliable and usable. There are tens of thousands of 172’s out there, and you can buy a good used one for under $100,000. A new one is half a million dollars - in part because of liability insurance, but mainly because of a death spiral - as more people opted for used airplanes, fewer new ones were sold, driving up the unit cost and pushing even more people into used airplanes.
Enter homebuilts and LSA. The FAA finally relented on regulations and allowed new innovation, and cheaper aircraft with more modern engines and airframes started showing up. If product liability was the main factor, this wouldn’t have happened because LSA manufacturers face the same liability issues as the old manufacturers. Some, like Cessna, have deep pockets.
The difference now is that you can buy an LSA plane for a lot less, and it will fly better and be cheaper to operate. The Cessna Skycatcher is an LSA that origincally sold for $111,000, then the price was raised to $149,000. Still a third of the price of a 172. It’s essentially a modern Cessna 150, complete with a Continental O-200. BUt it’s faster, climbs better, lands shorter, has more useful load and range.
A better example might be Van’s RV-12is, a factory built or homebuilt light sport aircract with a modern Rotax 912. It cruises at 144 mph on 100 HP, can carry two standard adults with full fuel (20 gal), has a cockpit 5" wider than a 150, 30% more range, a glass cockpit, and you can get one of those for just over $100,000. The difference is the regulatory environment.