If people would stop focusing on looking for other people to make things right, and instead put more effort into seeing how they can best contribute themselves, things wouldn't have to be as complicated.
Do you really believe that the general populace would ever consider this? I personally believe the general public is close to incompetent, they are given food if they do nothing. The weak always survive, even when they are close to useless, all because "everyone deserves to live". I say thats bull, if you don't contribute you don't get a slice of the pie.
Hey, yeah, screw children, the temporarily injured, the elderly, and any and everyone incapable of defending themselves from exploitation. No work, no food, deserve death. It's a wonderful world view that necessarily entails goddamn everybody dies.
I see no problems!
As for low level government, DZA, which is basically what you're talking about, it's a wonderful idea that consistently breaks down once you hit a certain population density -- simple fact is that sheer logistics demand a certain degree of authority figures after things hit a certain point. It's certainly a lower and less pervasive degree than we've got (mostly because of the whole power seeks more power thing), though. Communications technology might be cutting into the extent that's necessary (See some of the Arab Spring stuff, ferex), but it's still years from actually coming into full maturity.
The why of it not really working is just scope, more or less. People working as individuals, even in tandem, have serious problems dealing with issues beyond the level of information they're able to process. You end up needing specialists in processing and disseminating that information appropriately -- i.e. authority figures. That gets the ball rolling, and then we end up where we're at. There's potential for technological solutions in the future, but at the moment all we can try to do is mitigate the damage to the extent we're able (currently failing pretty hardcore, but it could be worse).