This has been done, years ago, and not since. The reason was simple: It's easier, cheaper, faster, and more powerful to just use an FPGA for both the programmable interconnect as well as the programmable logic.
Of course, FPGA's are only good for digital logic. On the surface your approach seems to work for analog circuits, this isn't always the case. Analog switches/muxes/etc all have a non-zero resistance, not-insignificant noise, and limited current handling capability. This limits their usefulness to basic circuits only. For these circuits, it is much better to just wire it up directly.
In short, only people new to electronics would use such a device and they might outgrow it rather quickly. And it would be expensive.
The 7805 will drop out typically around 1.6V above the output voltage. At 1A it's guaranteed to not drop out with 2V of input-output differential. Most likely you'll not be running anywhere near 1A or you'd be using a switching regulator, but even at low current the dropout is not so low- that's because the 7805 is not an LDO regulator and there are Vbe drops in there.
One could guess that the input ripple rejection probably deteriorates as you get close to the dropout voltage and the gain drops. The datasheet specification is at 5V input-output differential, so they sidestep that issue. If you have a sensitive analog circuit like an RF module you may wish to use a higher input voltage than the absolute minimum.
If you're using a 7805 with unregulated (transformer, rectifier and filter) input voltage probably needs to be something like 10V to be safe and account for line voltage tolerance, ripple and so on). If you're using it with a regulated supply (like a switching wall wart) 9V is good, 7.5V is okay, but 6V is not high enough. There are LDO regulators that have very low dropout (so 6V would be fine) but they have other disadvantages (they are only conditionally stable- pay careful attention to the output capacitor value, ESR and type), they are more expensive, less sources, and generally have much lower input voltage capability so they're easier to fry with input transients. Much modern electronics uses LDO regulators and/or switching regulators, there are literally thousands of possible parts to use, but none yet has quite the staying power of the 7805/78M05/78L05.
I would say that if you need a heat sink on the 7805 it's time to move to a switching regulator in most cases. There's no problem using the 7805 or 78M05 at 10, 50 or 100mA, and it's better than a 78L05 (more expensive, but the circuit is different and has better guaranteed performance). The trade-off of an LDO vs. a 78xx regulator is a bit more complex and it is heavily dependent on the input voltage and how much control you have over it.
Best Answer
You could solder #22 or #24 wire to the 7805 leads, then poke those wires into thte breadboard.
Alternatively, build the voltage regulator on some perfboard (or just solder things together in mid-air), rather than trying to put the 7805 on the plastic breadboard.