As the subtitle of the book says:
More competition in the most important market in the world, and this market is the market of living together. So the author envisions different kind of free private cities, for different kind of people, so to refer to your analogy, if you´re not happy with Amazon Prime´s movies you go to Netflix. And you´re right, the author also thinks that with time, if investors see they can make money with those cities, and governments see the advantages of ceding territory and jurisdiction to those cities, more cities will be founded and their annual fees will get cheaper.
Right now in Honduras, the government has also not agreed 100 % to Gebel´s ideas, in a recent interview he said about 70% could be realized, but that´s still better than anything else currently in existence, so it will be similar to a Free Trade Zone, but with a bit more freedom.
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Very interesting. Market controlled pricing is always the best way, and works out for everybody.