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?

They barely produce anything. Essentially all Switzerland is is a bank for the rest of the world. In that sense, this is a Nash eq.

Though as the wealthy world has grown from Europe to Global new 'Switzerlands' have evolved in the Americas, ME, and Asia (with similar political institutions but not cultural)