Also his cyberspace and seasteading ideas are far too optimistic. High tax governments are currently going after tax heavens, even as old and diplomatic strong ones as Switzerland. What changes does your sea outpost have against the world?
But he's missed out on two important things. First democracies tend to follow a long term cycle of government boom and bust. See Sweden and Great Britain. The general patter is the government grows until it's too big to be effective and then it collapses.
The other example is direct democracy like Switzerland, that's also worth examining.