I generally agree with that, but there is a potential downside to it as well. The slack that humans will cut you is not a right, so it can be taken away at will

I generally agree with that, but there is a potential downside to it as well. The slack that humans will cut you is not a right, so it can be taken away at will for completely arbitrary or malicious reasons such as stereotypes against particular groups or even because you didn't bribe a particular offcial. I'm still convinced that your point is correct, but it only works in combination with the utmost transparency.