There seems to be some sort of general belief that everyone acts at least roughly in good faith. And sure, there are hiccups, but things will work out fine in the long run as the world moves towards peace, liberty, and freedom.

It would be nice if that was the case. Personally I think it has all the well-intentioned naïvety of a 14-year old "why can't we just abolish the military?!" pacifist.