Your pro-government rant doesn't fit in this case because the government is one of the customers in the zero day market.
There is nothing libertarian about the defense industry or their actors. Unless you mistake neo-liberalism as libertarianism as far too many people do.
(Legitimate) governments generally are the only legitimate users of 0-days. Governments can legitimately and legally hack into your computer; nobody else can. Governments can legitimately and legally shoot you, but generally nobody else can.
One definition of government is that they have a monopoly on violence.
(I say "generally" above because there are exceptions, of course.)