Uhm...
There are 3 possible power levels. A USB device that draws so much power it has to be plugged in with a regular AC adapter. A device that can run on low bus power so it can draw power from a self-powered hub (a mouse connecting to a USB keyboard for example). And devices that use USB power but need the full 500mA. These don't have to be plugged into the computer ports necessarily; they can plug into a hub as long as the hub uses AC power, so that all the ports get the full 500mA. There really aren't many of those "mid-level" devices, most things are either very low power or draw too much power for the USB bus at all.
What does "regulating" the power mean? The USB specification calls for 500mA per port from a powered hub, there's no regulation to it other than normal voltage regulation, which can be crappy or good just like any other voltage regulator.