The trade off then becomes efficiency of scale vs. tolerance to failure.
I would argue that certain sectors, like infrastructure for public utilities, would be negatively impacted by treatment as a free market - the cost of building that infrastructure presents a barrier to competition, so the market isn't terribly 'free' anyway - and gain much more from the efficiency of having a single pipe going to everyone's home which all suppliers use, with everyone paying for the maintenance of their own infrastructure.
I would argue that certain sectors, like infrastructure for public utilities, would be negatively impacted by treatment as a free market - the cost of building that infrastructure presents a barrier to competition, so the market isn't terribly 'free' anyway - and gain much more from the efficiency of having a single pipe going to everyone's home which all suppliers use, with everyone paying for the maintenance of their own infrastructure.