I'm not sure how that is a benefit and I think a lot of people are mistaking the absence of rules with the absence of authority. The easiest way to get compliant people is to threaten them with punishment but not tell them what the rules are. They had 5 other students explain the nuances, rather than someone with authority because that way, they could still punish you for what those students told you was OK.
It's essentially an open door for exertion of arbitrary power, but dressed up so the people welcome it as freedom. Imagine if traffic laws were "use your own judgment" - no speeding signs, but the cops could still pull you over on a whim and ticket you for speeding. And you couldn't go to court to contest it because there are no rules, and we'd all be driving a whole lot slower. But at least we're being treated like responsible adults, right?