Well the reality is the blockchain is programmed by people, right? So any network established to act as the new government is still at the will of the people who write it.

What I could imagine is an open source "constitution" of sorts enforced by the blockchain in some capacity, at least on the economic level. A socialist society therefore could implement something like a strong UBI or equalization of people's net worths just via the blockchain itself and you rid yourself of the "elites" - but this still requires that everyone in the physical side agrees to such a system.

There won't be a way to rid yourself of the physical government.