I don't see the harem the guys are talking about... Maybe I'm blind or any girl that's slightly close is a harem?! For now it's not bad. And yeah, the government is there. It should be when it's halfway decent as players can be seen as a military recource that's not strictly controlled and prone to chaos so all the more reason the government should at least record if someone is a player. Not that they directly control or even force someone to join, just eliminate the criminal players and record the demi/human ones. Exposure is almost impossible to evade when it's relatively easy to expose as they are missing hours to days (later maybe even longer?)
It is pretty relaxed. He toys with the organizational, does whatever he wants and is trying to live a relaxed live with ran.
He does have a system, but it's pretty much irrelevant after he gets to an 'above human' level. Sure, the rewards are very convenient but he gets them relatively early on and then just use them as tools to have an easygoing live while watching conan run around, toying with the black organisation and have his romantic life with ran.