If people wanted replaceable batteries in the US, companies would sell them.

There's big conspiracy here. They just don't matter to most people.

And this regulation is really bad and will harm innovation for very little to no value.

The free market only works when you have sufficient competition. The phone market is absolutely not trivial to enter, so your first sentence is plain and simply false.

Also, given that iphones almost already pass the requirements, where is the harm to innovation?