The difference between the current social system and Steem is this: in Steem power is closely related to responsibility, which means those who have power and abuse it act against their own long-term interest.
This close link between power and responsibility is not perfect here in Steem, but still much better than anywhere else.
A man may be mistaken in regard to his long-term interests. Isn't it?
A small child does not want to learn, he wants to play. But in his best long-term interest to get a good education. However, he does not understand this. Because of the foolishness we sometimes act against our own interests.
No one wants to deliberately act against his interests. But due to foolishness (and therefore mistakes) it happens. Do the leaders of Steemit completely free from making mistakes?
Why is it better?
This is true but it has nothing to do with Steem. No system can protect you from human mistakes when intentions are good. All we can do is align the interests of those who have power with the interests of the whole system. And this is what Steem does. There is no other way.
As @dantheman has said: those who have the most power in Steem, have the most to lose if things go wrong. This is not necessarily true in other economic systems, e.g. corporations.