Is this an argument for more government, or less?

Plus organised crime hardly enables a free and open society. Especially as a free and open society revolves around a viable rule of law.

"Rule of Law" is one thing, and is largely desirable, yes. Capricious and arbitrary regulations that try (vainly) to pre-empt a crime that might not happen, and which infringe individual liberties in the process, are quite another thing.