What other solution is there?
None.
The whole notion of the social compact is disregarded in this, and in so many other things (border protection anyone?). If the State will no longer even pretend to provide real justice, then people will get justice in other ways available to them. That's not a warning or a threat, that's just a recognition that water finds its own level. When it happens it will be completely legitimate, and those people who claimed a monopoly of force in exchange for providing justice will find themselves right alongside the actual perpetrators. I make no distinction between them.
They've nullified themselves and their "monopoly". The only "justice" they uphold now is arbitrary and self-serving, which negates our "need" for them and dissolves the deal. Which, in essence, just repeats and reaffirms what you've written.
But, one more thing: when the straighten-this-sh*t-out time arrives and they're declaiming we 'have no right' no take justice into our own hands, we'll remind them that justice always remains in our hands, we simply, for a time, lent them some of our authoritah.
And then we can put paid as well to this "driving is a privilege" bullspit.