Some people need to be ruled, sure. I don't think libertarianism is in line with totalitarianism, so any one wishing to not rule themselves should be permitted to live as peasants.

Though I think a larger problem than bad government is that governments are not allowed to fail. A failed government basically means all its citizens die, and that is unacceptable in large scale society. Since failure is not permitted, there's no incentive to fix bad systems or for any new system to be well thought out. So I'd propose a severe de-scaling into citystates that self-govern - many will fail, and death is inevitable, but that's only a problem if you cannot leave a dying society (either as a refugee to another, or as a new settler).

I believe that such a trial by fire is necessary to discover what works and what does not work - and perhaps more importantly provide recordable evidence to outsiders that is convincing enough to influence how they handle their own governance.

Let all the villains and perverts build their own nests. If they survive, then it proves their merit (or that a foreign power has money to burn).