From a friend:

Jonah,
I’m sorry you didn’t mention the crux of the K Street problem: the more
issues are put under the control of political decision-makers (as
opposed to economic or other factors), as folks like Yglesias would
have us do, the more important it becomes to more people to influence
them. Their money flows in and people can make their living as
middle-men. If you want to get rid of K Street, reduce the scope and
budget of the federal government. Many of the lobbyists will have to
move to state capitals (if issues devolve) or get real jobs (if the
issues are removed from the political process).