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 Swiss government has the luxury to be able to throw money at every problem as everyone stashes their money in their system. 
And yes, a high education ( not iq) imo is essential for their system to work. 
Most politicians don’t care about education, as the benefits are only realized after they retired