The more I deal with the Federal government, the more I realize that the pathway to the stars is going to be bankrolled by guys with names like Allen, Bezos, and Branson. And like some of them or not (don't get me started on Bezos), I'm OK with that. From what I've heard, this may go back to an engineering decision Burt Rutan made in going with a solid-fueled, liquid-oxidized engine instead of a liquid-fueled one. Apparently on SpaceShipOne, that had a tendency to shake loose chunks of propellant which could clog the nozzle and cause an explosion.
PJMedia is an arch-conservative site, but whether or not that's your particular political cup of tea, an aerospace engineer has his thoughts here.
http://pjmedia.com/tatler/2014/11/01/what-happened-to-virgin-galactics-spaceshiptwo/?singlepage=true
Does this mean that the FAA should have been more involved in regulating this activity? No. This was a test flight. This is what test flights are for. The desert around Mojave has a decades-long history of smoking holes in the ground and test-pilot funerals, though most of them usually originate from Edwards AFB, a few mile to the south.
And the way to honor the guy whose funeral it is is to gather data, fix the error, and press.