Let me add this Paine, given only those two hypothetical scenarios I would still choose the latter. Without police me and my neighbors would at least have a chance to defend ourselves against the mobs without the threat of state retribution. The police state with it's courts, jails, and badged thugs is a whole different animal.
Then I can suggest a few places you may wish to move and have that beautiful arrangement. The rest of us normal folks would like the police to stay on duty.