Salon.com Technology | Why don't we do it in the road?: "A new school of traffic design says we should get rid of stop signs and red lights and let cars, bikes and people mingle together. It sounds insane, but it works."
Kottke has some commentary on this.
This does make a lot of sense, though the examples of 'no rules roads' given are all in places that have never had rules. Simply getting rid of the rules would lead to chaos. However, cyclists who take their space on the road are much safer than the cyclists in the gutter.