Governments are inherently prone to corruption and abuse of power. It is stupid to grant the single entity the right to proctect you, your life and your well-being.
What we need is multiple court systems, multiple police systems, etc. And what's more important -- the ability to freely choose between them. Just like you're able to choose Pepsi over Coke or to choose Google over Bing, or to choose one bank over another.
This isn't easy system to achieve, but mostly because a lot of people are skeptical.
More on this topic: http://mises.org/rothbard/newlibertywhole.asp