I just wonder if there is good reason to believe that a democracy can give way to privatization of govt services and what would that transition look like? What is the most effective political and/or commercial strategy for accomplishing that? Does support of the libertarian party aid in that effort? (it is supposedly their end goal right?) Is the libertarian party and strategies effective at accomplishing that task?
The key is to change public opinion. Once public opinion changes, no government (least of all a democracy) can long resist. Will we succeed in changing public opinion towards libertarianism? I don't know. It is an uphill battle. But if we do, the political system will have to change accordingly.
How should we most effectively try and change public opinion? I don't know. I believe there are many possibilities, from working within the political system (e.g. Ron Paul, Libertarian Party) to politically-minded think-tanks (Cato Institute) to educational institutions removed from the political system (Mises Institute) to informal attempts to persuade others (what I am doing here).
Also, what are good examples of government losing power to private entities? The slums of rio de janeiro where druglords own neighborhoods and cops are afraid to enter? The Italian mob and it's ability to trump government in places like Sicily? Belgium's absence of government for 249 days and possible more frequent and enduring episodes to come?
Good examples include the American experiment with separation of Church and State (radical at the time). Privatisation of a large variety of public services, from national airlines to telecommunication operators. Radical reduction in tariffs over the past 100-200 years.
Libertarians advocate a reduction in the scope of government power. No libertarian advocates lawlessness or private criminality. Rather, we recognise that in modern societies, by far the greatest criminal (from a normative, not legal-positive perspective, of course) is government itself. Criminals are bad, but people can effectively combat criminals, and those are clearly understood to be just that - criminals. The problem with government is that it enjoys legitimacy, making opposing it much more difficult.
Does that mean we will see the free-market economy and associated culture expand to every corner of the globe (globalism) and then eventually get dissected by emerging local markets at which point centralized government would become largely obsolete? If so, we have an economic solution to our political problems, not a political solution to our political and economic problems.
Free-market isn't a single fish. It is an entire eco-system within which some fish grow and prosper, while others die. As for your last question, I advocate minimizing the scope of political action at the expense of either economic or other voluntary (non-economic) action.
voters don't choose the outcome of elections.
Power chooses the outcome of elections.
I understand (and greatly share) your frustration with the illusion of democracy. However, "power" can only affect the results of elections to a limited degree. Power is very effective in influencing issues over which voters have no strong view. It can also marginally distort election results through outright fraud, or by tilting the playing field (zoning, anti-third-party election rules, etc.).
But that ability is limited. Observe Libya/Syria for what happens to power when it conflicts too strongly with popular opinion.
They aren't. Libertarians are subject to the same natural laws of greed and self-interest as are all the other parties. So until they incorporate that into their philosophy and strategy they're gonna be fighting a losing battle.
I think you are partially missing the point. Libertarian politicians aren't, in principle, better than other politicians. However it is silly to suggest that all governments are created equal. That there is no difference between Zimbabwe and Switzerland.
Politics is inherently corrupt, for the many good reasons you cited. That is why we libertarian aren't advocating having "our man" in control. Rather, (and uniquely amongst political activists) we are advocating that no decisions (or as few decisions as possible) are made within the political system.
We are not trying to reform the political system, but rather to reduce or eliminate its influence over our lives.
Free men are not equal and equal men are not free.
Government is not the solution. Government is the problem.