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?

The catch is that their GDP is derived primarily from their ability to look the other way. Switzerland would look very different if their post-WW2 isolation continued. The Swiss gov't is very much what you would want any gov't with a resource/services "curse" to look like but it's ultimately an externality.