The issue with smart contracts is that the people behind the idea don't seem to understand that the issue with traditional contracts does not lie in the parts that a clearly defined, but in those that are not. These are the parts where the legal system comes into play in order to reach a decision on grey areas like that.
The other problem is the obvious issue that smart contracts make the implicit assumption that we are able to write bug-free code. Evidently, that is not the case.
There clearly needs to be some sort of mechanism to sort out issues that may arise from this. But in practice Ethereum has replaced an imperfect but robust mechanism in the form of the legal system with one guy, who is accountable to no one, making discretionary decisions with no guidelines to bind him.
The other problem is the obvious issue that smart contracts make the implicit assumption that we are able to write bug-free code. Evidently, that is not the case.
There clearly needs to be some sort of mechanism to sort out issues that may arise from this. But in practice Ethereum has replaced an imperfect but robust mechanism in the form of the legal system with one guy, who is accountable to no one, making discretionary decisions with no guidelines to bind him.