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Your suggested imperfect system only needs to be better than the current imperfect system, in order to be something to aim at.
Community standards made 18 the age. It did it the usual way: people apply all different kinds of pressure. Some of it through the vote: we vote for people who seem to advance the ideas we like, shared by the groups we are a part of. Some of it through the courts: when people believe the law is unjust, they will use power to demand that it be re-considered or overturned. Some of it just through conversations: convince others of an idea, and that idea becomes stronger in the culture.
If a government is representational, eventually the law will reflect the will of the people, when they exercise these kinds of forces.
That's kinda what my point is, I suppose. You say "let anyone construct a contract and government can only arbitrate!" but the people demand a special type of contract law governing certain types of contracts. If we don't have that, the government is not representing the will of the people.
That's a bigger problem than we started with. I think that's my point.
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