Yes, definitely the world would be a better place when we replace organised religion with spirituality because organised religion is mainly about self and using fear and guilt to control people, whereas spirituality is mainly about God and being set free from fear and condemnation through knowing and experiencing the perfect love of God.
Religion focuses on our responsibility and our performance (what we must do for God) — it focuses on living right but does not give people to power to live right. Spirituality focuses on our “response-ability” (our ability to respond to God’s love and grace) and our rest in what God has done for us.
When we first freely receive the love of God, knowing we are freely blessed and forgiven by Him, we will be able to freely give His love to others by blessing them, encouraging them, forgiving them, with no strings attached.
Furthermore, spirituality is about knowing our true identity — that we are made in God’s image — and by first knowing who we are, we will live and act according to our identity as beloved sons and daughters of the Most High God. But organised religion is about doing in order to become something or someone — it makes people self-conscious and self-righteous, because religion can make people mean (when they think they perform better than others) or miserable (when they think they have failed to live up to their own expectations).
Last but not least, organised religion often breeds insecurity and creates strifes and divisions among people out of envy and jealousy, but spirituality fosters unity in diversity because it helps everyone understand that we are all one with God and one another, regardless of our backgrounds and cultures because through Jesus’ finished work at the cross God has reconciled all peoples to Himself and made us new creations in Christ.
(Adapted from Yahoo Answers)