There is definitely no way that people are doing better without rules and regulation from the government and the reason why this is so is that rules and regulations actually keeps people in check and actually stops them from being inhuman or committing crime , the fear of actually being punished is the reason why people do not commit offences and crimes so if in a sovereign state or a sovereign government diseases to be laws and rules which guides the nation and its citizens then it may cease to be democratic and people's human rights may not longer be respected because there's no rule of law to uphold the sovereignty and power of the law.
So some people deliberately break the law because it may suit their purposes, for example someone who is a thief knows that stealing may end them close to 10 years imprisonment or someone who is actually a drug trafficker those that drug trafficking can n u close to 50 years but instead they still go ahead to break the law and commit these offences and crimes because breaking these rules would actually suits their financial purposes of which they are actually doing it in the first place.
People have different reasons as to why they commit offences and crimes it could be a personal vendetta, so if a country now ceased to exist without rules and regulation then people can take their fellow human beings live without retribution this means that the rate of crime will plummet and humanity may essentially lose their consciousness and conscience and this may bring the world to an insane end.
So the fear of being punished is the major reason why people do not commit offences and if the government now chooses to cancel rules and regulation then the fear of being punished will no longer be existent which means that people cannot take whatever action they like. Patriotism is the second reason why people obey law and follow them but patriotism will cease to exist and people may no longer find a reason to actually maintain their humanity in lawless society
In my opinion there is no way that society can live without any form of laws and regulation. Maybe we would need less regulation here and there, but without any our world would be chaotic and probably resemble a warzone. And with regard to the second part of your question. People break the law deliberately because they can. There will always be some people who do not follow any law.
Have a good weekend.