So it's more like, to borrow my car, you have to post 1.5x the value in an escrow account, I have to post 0.5x into the same account. If-and-only-if we both press the 'happily concluded' button, we each get the money back. If it goes south, our only recourse to (a) destroy the value in the escrow account (which either of us can do unilaterally at any time), or (b) use the leverage provided by (a) to negotiate an amicable solution outside the contract.

Which doesn't sound any less wild, or provide any more of a solution for actually dealing with the meatspace problem. In fact it adds a meatspace problem, since you can't actually be made whole by the escrowed amount, you have to go negotiate with someone that is trying to screw you (or who broke your camera, or trashed your house, or whatever) to arrange an out-of-band resolution.