Well, it depends on your political preference. Strong social liberty or strong economic liberty or something in between? It depends on what's important to you.
Sure, though there are plenty of small government countries out there that aren't hell-holes (eg Vanuatu). It's just that social democracy is really quite philosophically different to libertarianism - the underlying ethos being 'everyone gets support' instead of 'every man for himself'.
Economic Freedom: http://www.heritage.org/index/
Democracy Index: https://portoncv.gov.cv/dhub/porton.por_global.open_file?p_d...
Human Development Index: http://hdr.undp.org/hdr4press/press/outreach/figures/HDI_Tre...
Gun Freedom: http://www.freeexistence.org/gunindex.html
Press Freedom: http://en.rsf.org/press-freedom-index-2013,1054.html
Drug Freedom: http://www.freeexistence.org/drugindex.html
Various other stats: http://www.eiu.com/default.aspx
Just notice the trends - which countries are you seeing at the tops of most of the lists?