What you say is true much of the time, but it is also true that consumers often do "choose" their arbiter. The aforementioned adhesion contracts often stipulate a private (non-government) arbiter, which the consumer (probably you, too) consents to of their own free will.

I see your points. But I kind of feel like we were having a rather nuts and bolts discussion about how to improve security in Linux, and then someone chimes in that we should probably rewrite everything in Haskell.

If achieving a free market requires a complete upheaval of all of our governments and laws, then the idea isn't very useful.