> As soon as you have an independent third party deciding who is right, that's your judicial branch

There IMHO is major differences between "a single government, dedicated to regulate" (which attracts people willing to control others, often letting the most unscrupulous gain power) and "any chosen third party".

Where most people are most of the time reasonable they will oppose insanity, if necessary forcefully.

People who are reasonable most of the time don't need that much laws to govern them. It's the cases of conflict, violence, murder, property ownership, property destruction, and other negative things that inevitably lead to the invention of government, judges, police, prisons. Every country in the world has them, and for multiple reasons.