Is that true? A statement like, "Drive Tom's car" is grammatically correct, but I don't think it is expanded to "Drive Tom is car".
Rules can change over time and you do not need a governing body for rules to exist as rules are just as easily defined by consensus as by imposition.
It is generally known that its and it's have different meanings. People may regularly confuse them and the confusion may eventually eliminate the rule, but that does not mean there is currently no rule.
Or to put it another way, if English has no rules, have understand problem no will sentence you this to.
I usually refer to this handy illustrated guide http://theoatmeal.com/comics/apostrophe :D
Sadly, no. "It's been like this for days."