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So you can either pay for others to use the service, or not have it at all. So your neighbor gets to define your choices in his personal best interest. Yeah, so much different from government. Well, it is... In that any individual can have a negative impact by forcing you to pay for him or go without.

Telos, you are ignoring competition in a free market. In our current systems governments have monopolies on many vital services. In a free market, without government, competition would be the best form of regulation. You literally HAVE to provide good service or face losing your customers. In government monopolies there is no such regulation. They have the monopoly on force too.