I wouldn't call that a success even in comparison with its neighbors. Something is wrong with your theory.
I am assuming you didn't actually read it then.
The standard statist put-down — "If you Rothbardians like anarchy so much, why don't you move to Somalia?" — misses the point. The Rothbardian doesn't claim that the absence of a state is a sufficient condition for bliss. Rather, the Rothbardian says that however prosperous and law-abiding a society is, adding an institution of organized violence and theft will only make things worse.
I suggest actually trying to understand the philosophy before trying to critique it.
But I'm confident they'd chicken out when it comes to dismantling the court system or police department in their town.
You must be new around here. If the police and courts are not violently monopolized, it does not follow that they would therefore not be provided. It does not follow that people would not want courts and police at all.
You fail to see that there wouldn't be contracts or laws to protect your rights and your property.
In order to make this argument, you would have to demonstrate that absent of violent monopolization, people in society A who are 99% non-violent and peaceful, would all of the sudden desire no means to organize society.
You also fail to see that it would turn into mob rule, very very quickly.
Not if the State is gradually abolished through education. If people understand that the State is not necessary for law and order, then they will turn to voluntary alternatives.
Just because people have abused power, doesn't mean that it's the idea of law and government that is the problem, it's the people.
Your problem is that you are assuming law and order is the same thing as government. All of us advocate law and order, the important part is that it is not coercively monopolized.
I will break it down into two groups.
Group 1 wants law and order to be violently monopolized. As in, they want it to be provided by a group of territorial monopolists who acquire their income by physical coercion (taxation) and violently destroy any potential competition in their territory.
Group 2 desires law and order. They desire police and courts. They do not want it to be
violently monopolized.
All of this anarchy talk is so vague and so irrational.
If you are purposefully ignoring all work that specifically details the rationality behind it, I guess I can see how you come to that conclusion.
http://www.ronpaulforums.com/showthread.php?296399-Anarcho-Capitalist-Reference-List
http://mises.org/rothbard/newlibertywhole.asp
http://en.wikipedia.org/wiki/Power_and_Market (available for free online)
https://mises.org/store/Product2.aspx?ProductId=297