That "libertarianesque" definicion of freedom commonly used in America is not shared or understood by many countries (not that it matters to americans, of course)
I will take the American definition of freedom, thanks.
Of course our options needn't keep state and citizenry separate - in fact, "quite a few" states do place themselves in the middle of the continuum: democratic systems, in theory, join the state and citizenry at the hip and provide the luxury of dealing in a pragmatic manner with the problem of making something so abstract as "freedom" manifest - as-you-go, considerate of subtly different definitions of freedom. Real life doesn't necessarily live up to this ideal; but some of the heights of American legislation do show what is possible.