You'll note that I'm not arguing "the more state, the better". So you're essentially making a straw man argument, here.
Discussion
What I wanted to say is that as you mentioned (and I don’t think any liberal thinker argues that by the way) neither is there an ideal state of nature or equilibrium which will prevent the State from growing indefinitely as it already happened multiple times and everywhere in human history.
I think that once you’ve made the State able to steal from ones to give to others, basically ripping out the obvious non agression principle, it’s over you’ve lost and there is no turning back. You’ve create a honey pot for private interests and lobbies and it’s a never ending fight for who will steal from who.
Basically it means that State intervention out of enforcing the non aggression principle is doomed and lead to a dystopian future because of human nature.
There is no moral gouvernement intervention as good or bad are different to every people. If the market forces can’t auto organize to provide a service, it has no reason to exist. The market is true democracy in a world where violence is not tolerated.