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It's a bad thing because it never works. The community can set all the ground rules they want and 99% of the playerbase can agree to follow them but that 1% is going to say to hell with it, do what they want, and make the experience miserable for everyone else because there's no penalty for them to do so.
Agree with everything there except for the opening sentence.
There will always be people who don't see the point in going with the flow. Regardless of their intentions, those people will always take away from the progress/enjoyment of the group. This happens even in RL, where we have actual rules and enforceable laws to prevent such behavior.
However, without those social norms that most people adhere to, this system (and RL) would be absolute chaos. You think people are upset now? Man, Eorzea would eat itself alive if everyone carried an "every man for himself" attitude.
It's wrong to throw logic and sensibility out the window just because a few bad apples (or hipsters, nonconformists, whatever) don't see the value in working with others.