I'm sorry that's... dumb. In the sense that this makes spirits some really shitty parents. Parents have to - HAVE TO - punish their children, explain why they punished them, and correct their behavior. Spirits indulge humans, coddle them, and and let them get away with anything including treating each other (their other children) horribly. I actually sympathize with the terrible humans here. No wonder they're terrible. An actually interesting story here would present the spirits as antagonists for giving humans too much power unchecked and refusing to properly discipline their usage of it. I'm going to say we need an Avatar to master all four elements and permanently separate the human and spirit worlds.