Both are good points and both factors are necessary in making a society conducive for strong families.
The state alone cannot impose rules and regulations on individuals within their private life. It will cause resentment within the people. Rather, the state should only concern itself with the public life, and as much as I know some folks might not like the sound of this, but a religious body should concern itself with the spiritual health of the people, and even that body should not intervene within their private life. Because only a spiritual incentive can regulate people within their private life.
Things like abstaining from sex until after marriage is something only the individual can do on their own initiative. And no other incentive is powerful enough to achieve this than the spiritual incentive.
Law can be pretty strong reason for people abstaining from committing adultery,if the punishment of committing adultery is stoning to death.Just this threat of a horrible death is enough to make 99.99% people to keep their private lives in control.
Neither Laws nor Social values alone can make people stop from doing the wrong thing. The social values which force people from committing sins can only be effective if they are backed by laws.
Take the example of west.The church tried to stop people from having sex outside marriage but without backing of Laws it failed miserably.So it changed religion and gave birth to concept like "born again virgin".
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Yes the state does have not the right to interfere in what an individual does behind close doors.But state can make it difficult and dangerous to do sex out side marriage.It can ban and closed down dating sites,hookup apps,censor media which make adultery looks cool and to make it dangerous just implement Hudood punishment.Just the threat of hudood punishment will be enough for anybody to abstain from adultrey,even if nobody is punished by this law.
Law,social values and spiritual values work in tandem to make a person a good citizen and a good human being.Without each other and alone they are ineffective.
There is saying in Sufi tradition that "A ruler is more powerful then 7 Qalanders" because what a ruler can do with stroke of pen the sufis can'tdo that with years of hard work.
There is a reason that The Prophet (Peace Be Upon Him) is known as the Greatest LAW Giver!
Oh of course, but the modern world is built on Riba. Everything we have nowadays was created through artificial wealth. None of this was possible ages ago.
Our consumerism is sustained through Riba. You can't do anything in modern society without having to get involved in Riba in some manner.
Want to buy a big home? Take out loans.
Want to buy a expensive car? Take out loans
Want to get a degree at a prestigious university? Take out a loan
Want to start a business? Take out a loan
Etc....
Riba is the reason of almost all the Economic problems.
Inflation...Riba.
Unequal distribution of wealth...Riba.
Non-productive use of wealth...Riba.
Everything can be done without Riba. People just have forget that just 200 years back no one in the Muslim world would have even thought of taking loan on Riba.
Now a days people can't just believe that success is possible without Riba.
Most people want to keep money in saving accounts and earn a fixed meagerly interest then start a small business that can generate a substantial halal income.
People don't understand that according to ISLAM, RIBA is equivalent to
waging war against The Prophet (Peace Be Upon HIM).
To this day I could only convince one person to stop taking monthly profit from the banks and close all his saving accounts.
It's a hard up-hill battle.