I'm with you on small, localized voluntary associations.

I would say that more than likely, that association will develop rules for arbitrating disputes that essentially constitute "a state". In the event that such voluntary association breaks down, you essentially have mob rule, not unlike the democracy you have such disdain for (and rightly so).

The reality is social organization is challenge, and musing about it philosophically as opposed to practically can easily lead to mental masturbation.