The negative picture you paint here is one possibility of what could happen. But from reading it, it becomes clear that you are completely unfamiliar with libertarian solutions, and how they work. Moreover, you do not address the advanced or interim solutions, but then the libertarian movement as a whole also comes up short in this regard. In either case, you might spend a little time researching libertarian solutions before jumping in and responding to that which you know nothing of.
OK, how would libertarians deal with existing public roads?