I like this branch of discussion and I want it to keep growing. What has to happen to make an electronics market free? Is the situation about spyware TV/cars can not be improved in any kind of Libertarian or Anarcho-Capitalist world without the Government? Is bad government worse for the electronics market than absence of any governments?

All unregulated free market arguments rely on low/no barriers to entry. There are very few markets where this is true in reality.

Some things like semiconductor fabrication will have huge barriers to entry for the foreseeable future due to being massively capital intensive and involving lots of trade secrets etc. We can't really do much about this.

What we (ie. the government) can do is ensure no entities own the entire supply chain, so you can't run a fab and also market finished consumer goods. That way, manufacture of consumer goods (including the software) from the raw fabricated parts gets a much lower barrier to entry.

We can also force consumer manufacturers to advertise all "features" that we deem to be important. We already do things like energy ratings, why not privacy ratings too? The more information consumers have the better.

Make no mistake, any capital intensive industry like electronics will degenerate into an oligopoly without government, or you can dream of a day where everyone can print semiconductor wafers at home.