We live in neither. Many things spelled out are unenforceable. Maybe things not spelled out are implied.

We live in a world where advertising boneless chicken does not actually mean the chicken does not contain bones.

I think a “spirit of the law” world would result in judges that already abuse their absurd powers way too much have free rein over any abuse they want to do, and there would be no system for ensuring everyone is treated equally or fairly.

No, you don’t. It only sounds nice. In practice this enables all kinds of spontaneous prosecution with any possible motive.

Theoretically, courts and judges exist precisely to balance the word and the spirit, and find and judge the actual intent. In practice, I'm in awe that good judgments still happen, despite everything.