Would you rather play in a game run by a soft DM or a hard DM? For definition of those two terms, I refer you to Penny Arcade!
(http://www.penny-arcade.com/images/2009/20090304.jpg)
source: http://www.penny-arcade.com/comic/2009/3/4/
LOL
"...when players could win and still lose." ouch!
I've seen some DMs who were more concerned about rules than fun, I never wanna become one of those, but I can see how without rules things can get... messy.
There's a happy medium which involves freedom and very little pimp hand :D