So, despite the cops not ( apparently ) arresting you, you decided to leave LOS, in part because of one incident. I could understand if it was a regular occurrence, but I doubt that.
I knew a Brit that left because he owned a restaurant and he was constantly extorted for "fees" by the cops, but those that don't own a business probably don't get hassled for such. I certainly never was.
Every farang in LOS should know the rules, and by continuing to live in LOS accept those rules, willingly or not.
If tourists consider carrying a passport an unacceptable inconvenience they will just go elsewhere. Up to them.