Willow Smith Isn't Given ANY Rules From Her Parents

If Willow Smith wants to whip her hair wildly back and forth during family dinner, she technically can, because she has NO RULES!
Her mother, Jada Pinkett Smith, has admitted that her and Will try not to give their daughter rules, and instead have other methods of parenting.
Here's what Jada had to say about it:

“We don’t have rules. We come up with agreements. Kids are little people, and we’re in life to guide them. Trying to rule someone is always an illusion, and it’s no different with children.”

Here's Jada on an example of how she's dealt with an "altercation" with Willow, when the 10-year-old set up a page on a social networking site against her mother's advice:

“I told her not to, so I was so mad. I said, ‘What do you think I should do now?’ So Willow said, ‘Mom, take my computer away’. And I said, ‘How long for?’. She said a month."

And more from Jada:

“So it’s negotiations. I’m not saying it’s always perfect. I have my bloops and my blunders. But I’m doing my best.”

And more:

“Being part of the family she’s from, and working in the industry she’s chosen, she needs some guidance. So I’m here to teach her how to look after her later. Willow isn’t the breadwinner. Most times in this situation, a kid is supporting herself and an entire family. She’s not doing it to support a family, so she can do as much or as little as she wants to.”

Negotiations or agreements instead of rules, eh? We're thinking that might work out SOME of the time…but there may be some circumstances where rules can do a child good!
Do U agree with the Smiths' parenting method? Or do U think it could use some work?