I read that to imply that war is application of governmental free markets. You would still need some governing government to ensure that all the free market governments don't eliminate eachother. And now you're back to the same thing.

...you have the world as it is. You can already move to change governments, only now you have to move farther than you used to. Notice how most of the oppression in the US is from the federal government, not state or municipal ones. We are predisposed to support government as a holdover from our instincts about tribal politics, but tribes never got anywhere near as big as 1/4 billion people. That immense power abuses result should surprise no one.