I agree with you that good and bad can be subjective. However, I do not think the concept should be abolished, it would jeopardizes the law system already in place with contracts and other aspects of the game that make it so two players are bound by an agreement. Whether a person breaks the laws or an agreement it's up to an individual player, there won't be invisible forces to force the law. The only people that can force the law are players themselves. If a person can get away with it is because of how cunning and skillful that individual was! Which is fun in my opinion!!
If in the law-breaker's eyes perceive himself as 'good' then that's fine. People that have been unjustly dealt with will sooner or later seek revenge. That's part of the game. Whether you choose to be good or evil is up to you :)!