A government is there to extract force from the market. [...] A government is a necessary good.

If you define government that way (the ideal rather than the realization), you're exactly right. Unfortunately, that definition does not describe any contemporary government I know of, and all too few historical ones. I think the Irish Brehon Law system did match that, though. That was a fine example of anarchist governance.

Harry Binswanger's mistake is the assertion that a government must be granted carte-blanche to use force, and never be forcefully challenged or competed with. That system is guaranteed to degenerate.