The law is definitely one of the most necessary ones in the Wizarding World; we know how Muggles have reacted to wizards and witches and to the general thought of magic in the past, and while I think that in modern times people are much more educated and fascinated by the entire topic, I don't think that the entire Wizarding World would have that much of a good life anymore; just imagine how they'd be haunted by curious Muggles! With the Statue of Secrecy, Wizards/Witches might be stared at way of clothing, but if they were known to be Magical people, they wouldn't be safe from cameras or people asking them to perform random magic tricks anymore.This, however, would be the most positive case; what, if they'd encounter less tolerant people (e.g. Dursleys and worse)? Would they even be able to live a normal and calm life? Most likely they wouldn't - I'm quite sure that some of them would even be in danger. Of course this doesn't mean that not a single Muggle should know about the Wizarding World -we know very well that some Wizards marry Muggles and that these relationships work well, but if everybody knew, it'd likely end in a catastrophe.

Avipuff
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