Stupidity is more dangerous than malice.
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And the purpose of limiting the power of institutions is to limit the number of poor decisions.
Anarchy doesn't work because nature abhors a vacuum. If there is a power vacuum, it will be filled sooner or later, one way or the other.
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If I had leprosy, I'd rely on myself and the kindness of other people.
"I disregard reality and substitute my own."
That is what this amounts to. We tried that. For a long time. It didn't just not work, it never worked, quite the contrary, lepers were invariably, without exception, stigmatized and discriminated against and stoned and exiled for no rational reason, merely the pure stigma and hideousness of the disease. Right up to our own lifetimes and the deeds of Mother Teresa.
But in the here and now those who "got theirs" are sheltered from the realities of the world by the very laws and institution they like to pretend don't benefit them at all. It's the social equivalent of Dunning-Kreuger syndrome.