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?

Like, what stops every other country from adopting a Swiss-style political system?

(This is not a rhetorical question, I'm actually curious)

1) homogeneous population 
2) not large size wise or immigration wise to give rise to radically different cultures inside the country 
3) there is size is not size - larger countries have a different set of problems. 

Downside is cost of living is really high, right?