Most chiefdoms, proto-monarchies and monarchies in human history have had totally inalienable rights for a select few people and it's arguable to say that some states in the world today continue that tradition.

A more grounded criticism, however, is that in the modern world the range of lifestyles and careers available to most free adults is circumscribed only by their wealth, health, the laws of nature and the ability of other humans to enforce prohibitions. Competition from existing political units already exists, but nobody has it guaranteed that if they formed a new polity it would merely be a kayfabe contained inside one or more existing states.

(I think the Culture doing this is a good thing, incidentally, but it does count as removing #1.)