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)

political systems are very path-dependent. this might sound Machiavellian, but to a first-order, countries aren't realized intellectually. They are a military that can defend all of the good stuff in the borders + a government that can control that military. 

Also the US has a Switzerland, its called Massachusetts