A government stripped down to essential functions offers fewer opportunities for the power-hungry.
My two cents
Here’s another argument for decreasing the size (and reach) of the state; the smaller the state, the fewer opportunities exist for corruption, politicking, and an entitlement mentality of individuals. (I see the mainstream media as one of the biggest culprits in fostering the latter).
Vallicella, B. (2011). Money, Power, and Equality. Available: http://maverickphilosopher.typepad.com/maverick_philosopher/2011/04/money-power-and-equality.html. Last accessed 2nd Aug 2011.