I have never seen "panacea" used by anyone except those opposed to any public infrastructure, and while you sound like you're speaking in all good faith and I appreciate that I still have trouble seeing this as something other then a strawman. Of course governments can have issues too. Public roads can have potholes. Bridges have not been kept up. Public parks aren't always maintained to the extent they're supposed to be. Etc etc. But at the same time there are plenty of good cases to show it can be done very well too, and the massive failures of privatized infrastructure are also in ample evidence. Fundamentally natural monopolies and basic floor level services for society (taking into account not just existing people but future generations and flexibility value to the nation overall) aren't great fits for a market. Some things really do make sense as an area of government.
Corruption is simply something that has to be fought, period, but we do have the tools to do so more easily at the local government level then for more widely distributed private entities. And whatever else the fact is that privatized information infrastructure simply has not worked overall. There will absolutely be cases of mismanagement and corruption in public information infrastructure should it become widespread, there will be fierce fights and politics and so forth same as with roads and everything else. That however doesn't make it worse then the alternatives, and long term in America at least citizens get the government they deserve.