What you wrote is an invention. Code is law came from, let's say, "techno utopians" that really believed you can programatically organize this way. See the concept of DAO for example.
So, code is law came from programmers that thought code is law. It's not a misunderstanding.
The ETH fork was caused about the difference wrt code is law.
So, code is law came from programmers that thought code is law. It's not a misunderstanding.
The ETH fork was caused about the difference wrt code is law.