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RE: Honey Nazis
Do some research on Dispute Resolution Organizations. Lots of good theories about how they would more effectively and efficiently protect us from everything from things like breach of contract and theft to assault and murder. The incentives for these relationships to work well would be strong in a free market scenario. These incentives are all but nonexistent in the current system. Best of all is that if the one you go with fails to live up to your expectations you could fire them and get a different DRO to represent your interests.
I have read about those ideas, but so far I have not been convinced that the incentives are actually there. If you can tell me something more specific, I might be swayed, but just like that all I can do is reject your assertion and share the fact that I'm currently convinced you are incorrect.