I felt the same way as you. Then we had a client that refused to pay us a month and a half of payroll. Changes the tune of things. The quote for me from the video that solidified this was: 'when you hire a lawyer [to handle contracts] you switch from being a design amateur to a design professional'. Applies equally to programmers.

Having a solid contract doesn't mean that you can't trust people. They just make everything legally binding so that if trust deteriorates (and it will if you do this long enough) that you'll be covered.

Also don't let the title of the video deter you, it's a (mostly) tongue-in-cheek title.