In Syria or China, if you offend the government or a member of an important family, you die.
One can argue that it works that way, not because Americans are more vigilant, but there isn't any real threat against the regime.
And yet, less "criminals" suffer under the fist of the government in both those countries (in peace time). You think more "good people" suffer under China's regime, and that's why you perceive a contrast. That's an ad hoc judgement and results from how you are raised in the first place. How do you know (or how does the State know) those kinds of offenders should
not be killed? What if everyone was okay with it, out of fear or out of being brainwashed by a dream?
I'm not saying the USA is worse or anything like that, but it seems to me that your claim requires you to be neutral in these cases.
Imagine you abolish the US government and all forms of the US state.
You still live in a community that thinks it right to stop people smoking dope. The ex-cops, army, FBI and so on are still there but now they no longer need warrants to come after you. They can come to your house when they like and do as they please. And if they decide that you deserve punishment, there won't be a court. It will be done then and there and your punishment will be whatever they think right. If one of them is really against drugs, you may be killed.
This is what I was talking about. The picture you present is also a dream. Seriously, why do you omit a possible transitional period? Why don't you question what could be done to prevent those problems from happening in the first place?
With this attitude, how on Earth can you think Bitcoin could succeed? Look at history. There hasn't been a single currency who survived State monopoly, even gold. Besides, the history of Bitcoin is nothing but a series of thefts and scams.