You're being very presumptuous and not using linear premises in your logic. You assume that government reduces human suffering and that people would be running wild without one. There's a lot more to society than government.
For example, why would I shoot you? I have no motive to do that regardless of what the laws may be. There is nothing the government has done to make it impossible for someone to shoot you. It's just that if some one does and gets caught, they go to prison.
On the subject of dissolving the government, you are completely wrong. There is nothing stopping me from non-violently overthrowing the government. The Constitution even states that if the people want to dissolve the government, they can. So I could try to convince people to elect myself and others who would change or even dissolve it.
"Also surely with better technology we will be able to transform prisons into rehabilitation centers and thus reduce our countries prison populations and thus become a FREER country, albeit one with less rights?"
This is completely nonsensical. Technology isn't holding back prison reform - social and political powers are the main drivers. Why would the number of rights be reduced? You've laid out no premise to connect nor support that statement.