Some things are the moral responsibility of government. Protection of basic liberty and property rights, for example. Protecting the innocent, etc. Protecting the rights of people to protect themselves might be an interesting point just about now.
I agree with you... but even the civil courts can be privatized (binding arbitration) and we definitely need to stop forcing people onto juries... the jury becomes involuntary servants while innocent but the accused is innocent until proven guilty.
And of course, if we had a small Constitutional government there will be many more positions open for private security personnel, at better pay. That will help cut down on crime and allow us to maybe trim off a few cops from the payrolls in the big cities.
of course that one is a ways off even if we do get a flat tax and small government...
People may have to learn capitalism all over again.