I agree for the most part, but the idea that rules and procedures exist solely as a mental shortcut is misleading. Rules and procedures also can protect us from the consequences of someone else's lie - or our own incompetence. In the case of the father who was separated from his kid for two weeks over the lemonade, should they have let the kid go home with his father immediately? Should they have dispensed with the ambulance?
Giving a child alcohol can result in real health problems in some cases. And anyone can say, "I thought there was no alcohol." Anyone can come up with an excuse. But there needs to be time to look into these things. The commonsense answer, "They should have let the kid go home and not made a big deal," seems right, but is flat-out wrong.
Two weeks was excessive - three days should have been enough - but insisting that rules can be bent based on a bit of intuition is dangerous. The Rule of Law - respect for Rules - is one of the major causes of western growth and success. In countries where rules are not respected, or people feel that they can bend the rules for people they care about or on a case-by-case basis, corruption reigns. Compare southern Italy to northern Italy, for example.
Wisdom sounds nice and pleasant, and rules sound lockstep and nasty and cold, but people tend to underestimate, not overestimate, the degree to which rules apply to them personally. I do agree that we need to rely on rules less, but that's not usually the problem.