I didn't say you should run society like that. I only provided an example to prove that centralized control is not necessary to enforce rules.

Typically people form groups that enforce certain rules. You can have bigger and smaller groups. Some big countries are very centralized, others less so - I think federalization in the US serves to counteract centralization? Ideally people have some degree of freedom to switch to groups whose rules align with their own preferences.

It is not an all or nothing, there can be degrees of centralization and decentralization.

Of course we can not escape the laws of nature in the end.

Centralized authority is definitely necessary to enforce rules in any practical sense.