People want order and stability. You need the police and you need firefighters and you need to pay them. You pay them with city and state taxes your need federal workers to manage all of that.
As you lose the government and become more privatized you become enslaved to the few. The roads are maintained by the city and if not then road bandits will control it.
In the wild west a lot of people had guns but they died a lot and died early. A gun cannot keep you safe you need the arm of the law to help you.
In order to control and assist all of the people in a larga nation, Especially in archipelago nation where only the capital's governement is not enough. Imagine what will happen if the number of the government are reduced. Then the people's aspiration might not be responded or given too slow of respond when those people are in a dire need of the government's assistance