Thanks. Walter Williams is another my favorite.
Besides opting out with one-two states, there are interesting proposals somewhere out there in the blogosphere. Internet changed the way people communicate. I can have nothing in common with my immediate neighbors, but feel close to others miles away. Quasi communities existing now on the Internet can overgrow into quasi nations uniting people who do want to be united. There are of course some "minor" issues like physical security, roads, defense, but otherwise, the level of the government involvement in the personal life would be up to you.
If you like science fiction, there is a brilliant book by Neil Stephenson
The Diamond Age : Or, a Young Lady's Illustrated Primer It's a classic on the nano-tech future SF, but the vision of cultural divides with emerging quasi nations is amazing.