The Articles of Confederation was predictated upon the existence of a very weak federal government joining together thirteen powerful and largely-independent states. While most libertarians recognize that the federal government needs to have some power and ability to raise revenue, the Articles allowed it basically none.
Under the Articles, the supreme entity was not the individual; the supreme entities were the thirteen states. Some of the states had government religions, and imposed many laws that libertarians would frown upon.
Excellent post BTW... ;-)