This is ignoring the fact that the government is the foundation of society (I know some will disagree with that, but the end result is just government with more steps).

Private models in a low trust society means the government will come and seize the models. Competitive business will only be allowed through cronyism.

The better option is to opt for high trust. Yes the Gman can rip your servers apart, but they know they'll face consequences, legal and political. Laws and regulations are the answer, not locking down into smaller fiefdoms.

You get high trust through social norms, not by more "laws and regulations". Social norms can't be imposed by fiat, they arise spontaneously, often for unclear reasons. That's why they're so fragile and precious. With Trump's destruction of social norms around the presidency and the federal government generally, the US is now just another country where bribery is the cost of doing business.