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RE: A Matter of Scale
I'm not sure why you would call it "governance," but otherwise I agree. "Governance" is from the same root as "governing," which almost always means one person or group forcibly controlling another. Consensus and agreement are not that.
You can use whatever words you choose; there are other more apt words to be found. When I say "government" here, I'm referring to a state or particular ruler. When I say "governance", I'm referring to the system by which group behavior emerges, whether it be through voluntary or involuntary processes. In the analogy, you and your friends aren't just aimlessly wandering the forest. There is deliberation and coordination of behavior.
It's going to be a great day when force and violence isn't used by government, because there won't be any.