"Code is law" is silly but also "Government will save stupid people is silly", BPs superpowers should be activated just in severe situations and with an EXPLICIT reason, not for opaque reasons an disputes between 2 people or bad diligence to store private keys..
If you don't trust the other person you should use multisig.. not a government
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Nation state governments have a monopoly on currency creation and violence in a geographic region. This is entirely different.
"Stupid" is a relative term. If we want a free society, shouldn't we ask ourselves, "What responsibility do we have to take care of those who can't take care of themselves?" If you win the genetic lottery for intelligence, and I don't is that just too bad for me? Tough luck, sorry chuck? I think we can do better and the veil of ignorance concept of philosophy suggests we should think carefully about how we create systems to judge who is stupid and who isn't.
Ideally, the technology becomes easy to use with account recovery and more. In many ways, these early challenges relate to the limitations of ETH, not EOS.