Privatization of government was a way of life in Iceland for many hundreds of years, and they proved it worked. If government illserved the people, they simply bid for services from someone who could do well.
In other states, Massachusetts and New York for example, it really doesn't matter how big the legislature is ~ if they're not already in irons when elected, they soon will be eh?!
-- Nebrska has a unicameral legislature, just like the founding fathers intended under the articles of confederation (one Senate/one rep per state). In addition, the nebraska legislature is "nonpartisan".
-- I've read many articles on Icelandic anarcho-capitalism, but I don't think it can be done today. Nocizk, the noted libertarian , actually disproved anarcho-capitalism back in the 1970s. He discovered that the natually arising "natural order" advocated by AnarCaps evolves into government over time.
-- When it comes to legislatures, size DOES matter. In california, state districts contain more people than congressional districts!!!