This is a very neat set of observations and a good description of how software and government work.
One point that isn't raised is the notion of switching, and I suppose it applies to government, too. As a user of a program, if it becomes so frustrating that you can't stand it anymore, you usually have the option to switch to at least one other product, pending the migration of your data. In the case of government, that may not be so easy; there may be many things that only the government does (in whatever inefficient, established way). I suppose privatization or moving to another country would be the analogs of "switching".
One point that isn't raised is the notion of switching, and I suppose it applies to government, too. As a user of a program, if it becomes so frustrating that you can't stand it anymore, you usually have the option to switch to at least one other product, pending the migration of your data. In the case of government, that may not be so easy; there may be many things that only the government does (in whatever inefficient, established way). I suppose privatization or moving to another country would be the analogs of "switching".