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 #1 thing other countries cannot replicate about Switzerland is being entirely up in the mountains with Western European countries on all sides. People are social animals who can’t fly. the geography generated the governance and societal temperament. The surrounding countries supplied trade for it to flourish