I think that whether libel laws are a good or bad idea depend on the place and judicial system. So do I trust the American judicial system to administrate British style libel laws; No. Do I trust the British judicial system to administrate them; Yes.
But the question I am getting at is, do you have a personal preference towards the strictness of laws that exist? I and some others who have posted in this thread have indicated a preference towards few if any laws against libel. Think about what kind of libel laws would exist in your dream country, where you could set up the judicial system however you liked.