Richard Ramirez became popular a few years after the law was enforced, and at that point it solidified for everyone "this was the right decision".
Many parents in the 90's let their kids walk home alone, and explore their neighbourhoods on their own.. And even today it's popular in rural areas. But the nature of where people live now is more related to cost of living and jobs, which everyone changes every few years - so nobody knows their neighbours or their community.
Now it's normal to shame parents who do this. And schools automatically notify the authorities if they're told about it.
Would kids get taken away from parents for this? Unlikely, legislation only pushes a $2,000 fine.
Yes, kids have been abducted in New Zealand. Yes, kids have been assaulted in New Zealand. It is a possibility.