> This touches on one glaring problem with libertarian utopia. Their replacement for the evil gubmint is a host of other bureaucracies (giant consumer groups, a bunch of non-profits doing testing, insurance for everything, etc.) that presumably will have many of the same pathologies as the gubmint.

Which is kind of the point. Institutions can be functional or disfunctional. The only way to prevent disfunctional institutions bogging down the government is by not having the government run them in the first place.

The easiest way to deal with a dysfunctional institutions is by letting them die. Which is a lot easier when government is not involved.

Last but not least, there is also the element of freedom. One cannot opt-out of government and its institutions - without having to move or worse. While as proposed above - the possibility of opting out of institutions - is necessary for having any hope of not being stuck with corrupt institutions.