If you view it as bad people are not going to want to run businesses.
I can't agree with you. People have sole proprietorships today, and they certainly had them 100+ years ago prior to the creation of the modern limited liability corporation.
My view is more nuanced than agreeing or disagreeing with the limited liability model. I can agree that it is a good thing for blind investors - you shouldn't be liable for an Exxon oil spill just because you own some shares in your 401(k). I don't think that it's a good idea for activist owners or employees.