It largely seems to be. What's happening in CHAZ right now seems to support that idea.
The trouble with democracy as a form of government (what CHAZ is dreaming of becoming) is that it is unstable. Since there is no constitution, there is nothing preventing one faction or other from gaining some kind of control by force, which is what is now beginning to happen in CHAZ. Democracies almost always dissolve into dictatorships or oligarchies, and usually fairly quickly.
Right now, in CHAZ, there is one faction that is becoming strong enough to intimidate others with violence. They say they are the new 'police' but they are really just thugs, acting on their own idea of what is 'the law' (as if there was one in CHAZ).
Governor Inslee and Mayor Durkan are truly idiots. They are supporting this movement which desires nothing less than to destroy the government and the constitution itself. Many in CHAZ are demanding the governor's resignation, despite the aid being given to CHAZ by her.
CHAZ is already beginning to have to deal with problems of sanitation, businesses trying to operate without threats made against them (in some cases 'fees' invoked by the mob), supplies (trucks can't enter to deliver them), and a growing population of the city's homeless (complete with all their diseases and their own problems of sanitation) arriving more and more everyday, finding an easy mark to scam from.
Mayor Durkan has ordered Seattle Police to stand down to the point that they won't respond to anything that isn't an emergency anymore. Things like car prowls, theft, even break-ins, will simply not get police response.
CHAZ itself is using their occupied area as a base of operations to conduct raids elsewhere in the city, which they call 'peaceful protests'.
It is a dream that will become a nightmare as the summer waxes on. The city of Seattle is truly becoming a very dangerous place to be in right now. Stay away.