From a classical liberal perspective, Switzerland's governance seems utopian. Low taxes, good services even for low income people despite the low taxes, very decentralized government, and it really does seem true that "no one bothers to know who the president is".

My big question: what's the catch?

It's a tiny country, only 9m people. If you want a fair comparison, pit it against all city-sized countries. Finland, perhaps Uruguay. Not Germany, not Russia, not the US. They are not the same type of thing.

In addition, CH is strategically located and great for tourism.