Comment: First

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Prove this statement:

"Humanity lived without the state for most of prehistory."

It was prehistory and, thus, not recorded.

"It's true that the powerful can bestow favors on their friends, but that's true under any system."

I directly made this point in the post.

"The powerful can always try to use coercion, and the only question is whether the less powerful are organized in such a way to prevent it."

I indirectly addressed this point in the post, when I suggested that it is very likely that a State cannot be limited once it is granted, by popular belief, a monopoly on force.

"When the American government was miniscule, and the market hugely free, and there was no Fed, and very little legal privilege, what happened?"

A hell of a lot of wealth was produced, which is now being (has been) squandered by the debt-based system - which I also touched on. (Did you not read the OP at all?)

"Force is always for sale to economic power, and force is a weapon that can cause economic power to be shifted between parties."

And with a popularly sanctioned military under the thumb of the economic elite, history has shown that millions of people often are murdered for silly reasons. If the State didn't exist, I wouldn't be in fear of Apple Inc, for instance, raising a military to force their cellphones upon us.

"To block their ability you need a sufficiently large and powerful segment of society to have a deep opposition to concentrated political power (and economic) power, and to hold it at bay through some kind of institutions."

Those [sarcasm]rich[/sarcasm] cowboys and citizens that backed off the BLM, I suppose, should have checked with you first - since it's an [sarcasm]impossibility[/sarcasm].