Of course no system works completely. Even in democracy crime still occurs.
The more freedom there is, the more freedom to hurt others, and the less security. The more security, the less freedom. The perfect system would have both freedom and security, and this is a contradiction. One must balance ones own preferences for their ideal system. Some cannot see the point of freedom without security to let them enjoy it. Others cannot see the point of security without freedom to exercise. I just prefer freedom because I can think of other forms of security (such as revenge, mentioned before) and I value freedom above all else.
Every system will have flaws.
Perhaps some humans will need organisation - anarchy provides the freedom of association required. The flaws here are that freedom to escape a system is also required, but cannot be assured (so one should just be careful what one joins) and the possible result of militant gangs (but hopefully by not allying with a gang one can just hide while the two sides blow each other away.
On the up side, no war (except invaders who come to steal your land, so self defense may be necessary: good old gun-law free anarchy), no corruption and no taxes.