Hey, I recognize this thinking! It seems the same idea has us both. I think I've taken a more "mystical" approach and your route is through information theory, or the fidelity of a system seen in terms of information - but its the same idea : the map is not the territory. We must infer that a truth exists independent of our senses, and that its impossible to fully live in the real world, since we can only deduce reality/truth from our senses and mental models, which contain errors. I liked how you used that to explain how legislatures inevitably get policy wrong.
So, what's the solution? I only have a half solution, which is inviolable property. It may be less than half... The problem with democracy is its main function is to violate property. If you dispensed with democracy and had only property, then you get feudalism, which can work great but can also simply shift where the property violations occur. Ideally, I'd like a democracy that never does anything. That's the problem though - people have too many opinions, and feel like they need to constantly do things, and that means a policy change, and it snowballs into a error/theft ball of statism, which equates to universal slavery.
