> I'm not sure this is a fair assessment. There's been tons of research into nuclear power, for example. Look at the generation IV reactor designs [1].
Research isn't industry. The regulations don't prevent people from designing reactors; just from building nuclear power plants.
I don't think the statement "The Nuclear Regulatory Commission is the reason nuclear power hasn't taken off" is incompatible with the statement "Regulation has effectively killed the once promising nuclear industry."
Nuclear is a significantly more regulated industry than coal and natural gas. Consequently, it is cheaper to run coal and natural gas plants, just because there are large external costs associated with natural gas and coal (emissions, environmental damage) which are passed on to the taxpayer instead of the consumer.
It is quite possible that if natural gas and coal were forced to pay for their externalities (via regulation) nuclear would be more cost-competitive, and you'd see more advancement of nuclear technology in industry.
Research isn't industry. The regulations don't prevent people from designing reactors; just from building nuclear power plants.