The eleven postulates are sufficient to prove 3.11.
Lemma 1 A line and a point not on it, two different lines in a plane, or two parallel lines define a plane.
Two points on a line and a point not on it define a plane by #7. If two lines are different there's a point on the second that's not on the first (by #6), so by the first part they define a plane. By definition two parallel lines are different lines in a plane so define it by the second part.
Lemma 2 If $a,b,t$ are different coplanar lines and $a$ is parallel to $b$ and $t$ is not parallel to $a$ then $t$ is a transversal of $a$ and $b$.
By definition $t$ intersects $a$ so call the point of intersection $A$ defining an angle $\angle at\ne 0$ (by #3). Let $S$ be a point on $b$ then $SA$ defines a line $s$ (by #6) which is a transversal of $a$ and $b$ (by definition). Then $s$ cuts off angles $\angle sb=\angle sa$ (by #10) and $\angle st\ne \angle sa$ (by #4 because they are coincident), so $t$ is not parallel to $b$ by $\angle st\ne \angle sb$ and #10, and is a transversal (by definition).
Proposition If $a,b,c$ are different lines with $a$ parallel to $b$ and $b$ parallel to $c$ then $a$ is parallel to $c$.
If the lines are coplanar then let $t$ be a line intersecting $b$, then applying Lemma 2 twice it is a common traversal of $a,b,c$. By #10 $\angle ta=\angle tb=\angle tc$ and by #11 $a$ is parallel to $c$.
If the lines are not coplanar, then let $C$ be a point on $c$. By Lemma 1 $a$ and $b$ are in a plane $\pi_1$, $b$ and $c$ are in a different plane $\pi_2$, and $a$ and $C$ are in a plane $\pi_3$. By #9 $\pi_2$ and $\pi_3$ intersect in a line $l$ that contains $C$.
$l$ cannot intersect $b$ in any point $B$, otherwise $a$ and $B$ are in both $\pi_1$ and $\pi_3$, so $\pi_1\equiv\pi_3$ by Lemma 1, $b\equiv \pi_1\cap\pi_2\equiv\pi_3\cap\pi_2\equiv l$ which would require $C$ to be on $b$, contradicting that $b$ and $c$ are parallel. So $l$ does not intersect $b$ but it intersects $c$ at $C$. Since $b,c,l$ are coplanar in $\pi_2$, by Lemma 2 they cannot all be different, so $l\equiv c$.
$l$ cannot intersect $a$ in any point $A$, otherwise $b$ and $A$ are in both $\pi_1$ and $\pi_2$, so $\pi_1\equiv\pi_2$ by Lemma 1, contradicting that $a,b,c$ are not coplanar. Since $l\equiv c$ and $a$ are both in $\pi_3$ and do not intersect it follows that $a$ is parallel to $c$.
Best Answer
There's nothing wrong with Euclid's postulates per se; the main problem is that they're not sufficient to prove all of the theorems that he claims to prove. (A lesser problem is that they aren't stated quite precisely enough for modern tastes, but that's easily remedied.) In every modern axiom system (e.g., Hilbert's, Birkhoff's, and SMSG), each of Euclid's postulates (suitably translated into modern language) is provable as a theorem, which shows that Euclid's postulates are consistent. You can find an extensive discussion of these ideas in my book Axiomatic Geometry.