[...] But we must recognize the fact that such a society is incompatible with human nature. It is an "insane society," a "sick society." [...]
I'm not so sure as to whether a "society" can be called "insane" and "sick" - or calling "insane" an institution/group .. these are terms that can readily be applied to individuals, but it's kind of an abstraction to attach them to "groups" of people - for one, F. Nietzsche has said, "Insanity in individuals is something rare - but in groups, parties, nations and epochs, it is the rule."
Don't get me wrong, there was nothing sane about, say, Nazism/Hitler - but hell, today they won't call crazy even Hitler (and maybe he was not) - so you get my point .. People form groups and become part of institutions pricesely because they want to avoid being held personally accountable for things they do not dare to do on their own