Do you think we should have all these recording contracts, Agents and legal things or do you think people should still get paid by SOMEONE for doing what they love, but with less emphasis on the legalk side of things?
Without the legal protections, the musicians would almost certainly get shafted. The agreements, agents, managers and such are there to try to make clear what the terms and arrangements are, and to have someone advocating for you. Of course, there are plenty of people who make a living playing on the street for donations, which cuts out pretty much all of the legalities. If that's what you mean, no reason not to do that
Of course there should be protections, but there shouldn't be any record companies holding them back. People should be able to release their music when and where they want.
Musicians should be able to do that, and some do. Check out sites like bandcamp.com But some people/bands just don't have the money/expertise to record their own music, which is where the record labels should come in.
It works both ways. It's not OK to say "I, as a musician, get all the protections and benefits you, as the record company are offering me, but you, as the record company, have no right to tell me how to market my music to have a successful career." If you want the help and protections that working with industry professionals brings, then work with industry professionals. If you want to do it on your own... do it on your own.