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Anarchism generally holds that nobody is superior to another. Society then functions because everyone recognises good ideas and will just cooperate to do them, and because everyone will be thusly motivated, nobody will want anything they can't receive.
Modern western society is already founded on the belief that nobody is inherently superior to anyone else. Now of course in practice this has not always been the case, and there still exist a lot of people who really don't believe this is true. But the ethos is still there, and most people would tell you they believe in it.
To continue that, and to your second point, one of the biggest flaws in any system we create is that humans are not perfectly logical and rational actors. You can't count on everyone always doing the right thing, even if they could all agree what "right" even means.
Yeah, the holes are pretty damned obvious. Anarchism really only exists in the complete absence of stressors.
It is like communism, it would work perfectly well if everyone was smart and reasonable and had the same goal.
Every system of government would work when everyone was smart and reasonable and had the same goals.
Any social and community structure is successful or not depending on how it handles those that want to abuse or undermine the system.