They don't have to be raised by a family. The Jedi don't treat the children with contempt. They are loving, and caring. You can see many orphanages/boarding schools in the real world where the kids live happily and are being cared for quite well, managed by monks and normal people. The Jedi had no issues with emotions, because living as an order doesn't make one's emotions go away. It's a practice that's been in our world for a long time, and still practiced in different parts of the world, esspecially by monks, and there is no doubt about their kindness and joy. The problem with the Jedi was that they were getting arrogant and headstrong, something which should never happen, "even the older, more experienced ones", all the while the Sith were right under their nose and they only realized their mistake by the time the Sith was in control of the galaxy. Also, they didn't fail Anakin, Anakin failed them. While it could be said that they could've tried to make Anakin understand, his arrogance and greed was too much at that point that he wouldn't have listened to anyone. Anakin's selfish love turned into greed and jealousy to the point where his ambition was to rule the galaxy. And the Jedi were all focusing on the future too much and not the living force, with Yoda playing a big part here, and Qui-Gon focused on the living force and attained enlightenment, and taught it to Yoda and Obi-Wan, who changes from their old self and focusing with the living force in the OT, and attains enlightenment after their death.