Good post and some interesting points. The theory is sound, the technology is there to be able to achieve a different government structure. In practice there would be so much resistance from the powers that be for this not to progress far. Governments will no doubt use blockchain moving forward but will we ever see a system where democracy becomes a self governing blockchain based contract? As fascinating as crypto currencies, blockchains and smart contracts are, for now they only give us the other alternatives like opting out of the legacy banking system.