When discussing freedom in this sense, I agree. It is when we discuss social freedom, the limitations placed on us not only by nature, those we meet during interactions and ourselves, but those placed on us with little input or consideration for our wishes by the masses(mob rule) or the 'rulers' that I believe that 'limitations' being good isn't so true.
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One of the known problems with democracy is that the 'minority' has a chance to be trampled by the majority. It's why 'equal opportunity under the law' is such an important concept to democracy.