Problem with less government is that someone else will pick up the slack, either explicitly (think 90s era Microsoft if there had been no antitrust case) or implicitly (manufacturers polluting waterways for those down stream.)
The government is supposed to represent the people's collective voice in situations where no individual voice alone will be able to correct problems -- at least, that's what modern democratic governments are supposed to be. The libertarian ideal is essentially equivalent to giving up your only method of combatting negligence and intentional damage by the powerful (which I today's world is primarily the massive corporations, but the same argument can apply to a uses of the church, individual people who happen to be excessively wealthy, or any other entity that's in a societal power level far above your own.)
Of course, power corrupts as the old saying goes, and governments are powerful. But the solution isn't to just give then up and let the world be run by completely non-representative entities. The solution is vigilance and a willingness to break with tradition any time the current government loses touch with the people they're supposed to be representing.
The US government has hit that point. We need to change the players -- and there's a surprisingly strong movement in the left to do that (progressives.. perhaps not as strong as some had hoped in this past election but still strong.) If the right can generate a similar movement getting back to policy rather blind partisanship, things will improve greatly. But as long as the Republicans (and yes, plenty of Democrats as well) are allowed to retain the current heavy bias towards corporate profit at the cost of the citizenry and even their purported ideals, things will continue going downhill.
But libertarian still isn't really a workable idea as it would be just as difficult to implement as fixing the government and not needing to simply get rid of it (thus exposing us to the problems it brings.) The same people who don't want to be replaced with a new generation also don't want to just leave entirely and for the same reason.