Even though halacha/[Jewish law] is important, there is the flaw that Rav Nachman [Breslov] point out. That flaw is Torah scholars that are demons. [Le.M I;12 I:28] [He bring this from the Talmud]. Thus when religious leaders are in charge, the society they create is a nightmare. But that is not a flaw in halacha but in people. For there is no system that can not be subverted. The reason is that no matter what the system is, people will find a way to mess it up.
[The English-American form of government maximizes freedom, but is being destroyed from with-in. ]