I agree, and yet, I think when you've only ever known a world where the state is the one that is meant to provide services and regulate to achieve beneficial outcomes for the population, it's really really hard to understand how a system that undermines that state to achieve the same or better outcomes could be possible.
Discussion
The systems we’ve seen where they have managed this have been small communities of coherent groups. Think like the Amish, or White South Africans in their gated compounds, or even recently the Muslims taking over in Hamtramck to a degree. Localised is the only way - big enough that the group is too hard to mess with but small enough that community ideals can be socialised.