People did choose to form a public sector a long time ago and that's that, you might not like it, but that's you. Every decision a individual or a group of individuals make is going to have effects in the future which will not be someone else's choosing. That's just the way it is.
If you dissolved the public sector then you will be forcing people who want a public sector to not have one, and that's forced individualism, which is not necessary better.