Yes we have. That's why the nanny state northeast has consistantly been decades ahead of the old south on social issues such as women's rights, gay rights, race rights. When the people identify a social problem they have the government step in and fix it.
Bit of a generalization there, especially prior to the Southern Strategy.
It's "nanny state" New Hampshire that doesn't require insurance for drivers, seat belts, helmets, has no state income tax and has been cutting its budget back significantly for quite a while, while it's "old south" Tennessee that actively prosecuted rail companies that didn't make separate train cars for blacks.
Take the complex issue of slavery. Vermont took the heavy handed government approach of making it illegal in 1780. Guess what didn't happen in Vermont? Slavery! The southern states let the individuals do what they want. Guess what happened? Decades of slavery and a deep culture of racial resentment on both sides.
So libertarianism, which is based off the concept of self ownership and free will, would advocate for slavery? Keep in mind, slavery wouldn't have gone far if the government wasn't actively putting down slave revolts.
Sure, you can directly protect your home, but what about transferable title to land you're not occupying? How efficient will things be if everyone has to send armed units to secure land they just bought? If you contend that "free market security" will replace government mandated police and soldiers, then what's to stop a private armed group just grabbing your land and saying "free market, dude!"
War isn't very profitable to those directly involved. Considering the fact that "legitimate" PDAs would be receiving money and support from its subscribers, whereas a "bandit" PDA would be reliant on having a constant flow of loot to keep itself going, it wouldn't be much of a contest most of the time.
You also ought to remember that the government regularly seizes land either directly or indirectly, doesn't allow competition/opting out, will not improve its services, has basically no input from those under it (barring the well connected and powerful of course), and, if "defeated" by another government, will hand over the apparatus of the state to a potentially worse ruler.