Since I have both watched the two of them, in my opinion the Sybil system is worse.
The kind of education and ethics imposed in SSY can be seen as really unfair and cruel but it's ultimately justified because their telekinesis power (or Cantus as they like to call it) that they're born with is a very devastating power that can easily be abused and misused. Fiends and Karma Demons are not myths in the SSY world, those two creatures represent the abuse and corruption of their power as you will see in later episodes (don't want to spoil). Now I will agree that their education system is flawed and that they hide too much but that was necessary to maintain a stable utopian society.
In the world of Psycho Pass, I really don't see the true benefit of Sibyl other than imposing a sort of technology driven dictatorship because unlike SSY, the world in Psycho Pass can still be considered as normal whereas SSY's world has been modified to an extent that the rules of life and nature in P-P are not compatible in SSY.
If I had to make a society. I'd combine Sibyl with the education in SSY.
I never said that I was always looking for the betterment of mankind.