The problem with politics is control. One person wants socialism, another capitalism, and another something akin to theocracy. What are we going to do with these people? Should we send them to the gulags? Let them vote for the next stupid idea? Pray for a better answer?
The answer, is to decentralize power. Just as with goods, different people want different forms of governance. Which is perfectly fine, except when rights are trampled over. And it makes a certain amount of sense to go with an X or Y type of state. The power costs goes down the more people want X or Y system. However, when you have a fractured system with so many nuances and micro ideas, in order to keep the peace you will have to blend many systems together, but end up without a system that makes coherent sense and leads to gross inefficiencies and in many cases abuse of power. This is before even taking population into account. Just as there is an optimal production possibilities curve with products, there is with governance as well. When population is overexerted beyond a governing unit's ability to govern, anarchy (in the bad sense) occurs. And where there is limited competition and a strong need for governance, there will be a monopoly, and just like any monopoly, power and wealth is concentrated and that power is abused.
That is where Panarchy comes in. It is the idea that governments or governance units should compete, and not be stuck to a single territory. It allows freedom to do as you please, but you must still remember niceties, because in the end, you are in a king's castle, and to disrespect that is to violate his property rights. Now there could be some conflict if some control freak thinks X or Y is being to liberal. But that already happens on a much larger scale. It would be better for civil and calm organizations motivated by profit to sort it out than underpaid bureaucrats who would likely take a bribe to change their decision. Organizations could make compromises that help both parties, and with the help of technology, many civil problems we have now with governments could be sorted out with intelligent systems and other such things.
Going forward the best hope I see for Panarchy is the Seasteading Project. The intend to colonize the sea and turn them into colonies of competing governance units. If you have an issue with one, you can leave and join another one. The only problem holding them back is funds. Blueseed is the most hopeful of these projects, but the progress is slow. Perhaps in the future we will see these come to life and blow commentators out of the water with their efficiency. But until then we should hope for Panarchy. It is a chance at peace and prosperity, if only we take it.