This is an excellent article. The DAO wanted to eliminate politics. But that is not really possible, due to the nature of human psychology and the human situation. You are always going to get cheaters, errors, unanticipated situations, and honest disagreements, all of which will require real human beings to make decisions and have the power to enforce them. Ethereum contracts can at best considerably reduce the number of situations.
And politics is always imperfect, the only question is how to do it as well as possible, and that takes intelligent judgement and at least occasionally a lot of luck.