He's left out the most important thing, though, which is trust.
A country may have the most moral and upright populace known to man, but if individuals do not trust that their fellow man wants to -- and most like will -- do the right thing, then the foundation for a small, freedom-protecting state is destroyed. If I cannot trust you, then I must pass a law to prevent you from doing something wrong.
There is indeed a lack of trust in modern society (IMHO it's mostly unwarranted). There are a lot of reasons for it. Ideological propaganda (mostly leftist, but also rightist); the still present worship of "experts"; the presence of a global, rapid-response news media which focuses on the bad apples; entertainment media which actively champions untrustworthiness; and so on.
The issue here is not so much how to restore morality (which most people posess already), but instead to restore trust. That's a tough assignment -- but it is probably true that a return to stigma would go a long way toward doing it.
And, one supposes, a mysterious plague that takes out the Hollywood types (very libertarian they are -- about behavior, at least) who have been so effective in removing stigma from our culture.