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?

I suspect the swiss collectively prioritise harmony and stability. Instincts honed over a few hundred years of wealth creation, off the back of colonised lands and commoditised people. Haunted when I eat a Lindt choc, how little farmers for cocoa and sugar get, and how this plays out over generations.