you know I asked myself the same question. I found the a worse case free flow in the first stage. Then I got to think about it more and took you the mechanical drawings of a regulater (first stage and second stage). Even if the second stage freeflows the first stage will open wide to keep up with the demand so in a sense the entire system is freeflowing directly from the tank. I agree the head loss will be great and the pressure at the end of the system (coming out of the second stage) will not be 3000psi but the entire system will be in a state of free flow subject to the laws of fluids.
It still comes down to Delta P as head loss will be consistant (if you are really free flowing)
It still comes down to Delta P as head loss will be consistant (if you are really free flowing)