Do you consider this insane? Your assertions that "everyone always must break the law" and "there are effectively no laws" seem a bit extreme. Ultimately, with any messy human affair, there is always going to be discretion involved, and I don't think implicitly codifying that is a bad thing. It does tend to work by and large. I've personally had much worse experiences with officials following the letter of the law than with them using discretion, but I admit I am not in any class that is often discriminated against.