There's no point having laws if they aren't going to be enforced. If those of us in the industry take the attitude that enforcement is entirely the responsibility of the government (after all, that's why they get paid), then most scofflaws would be able to operate with impunity. The authorities just don't have the resources to police the industry unless we help them out by showing them where the hacks are. The only way the authorities would be able to take over without needing our help is if they got way more resources, and that would mean huge increases in taxes, permit fees, etc. in order to fund it. Personally, I'd rather take a few minutes by pointing the state toward the bad guys than have to pay a lot more in taxes/fees.
I've turned in lots of hacks over the years, and the authorities always thank me for it. I know for a fact that they act on my information. I'm not out there confronting the lawbreakers or taking the law into my own hands. But when I see Handyman Stan running an ad offering to do electrical work (in addition to washing windows, mowing lawns, etc.), if I don't find him in the online database of licensed ECs, I send the ad to the state, and they make sure Stan's ads get pulled.
Sure, there will always be hacks, but doing nothing about them only lets them proliferate, and it cheapens the industry overall.
Just my $0.02. Your mileage may vary.