Right, but there will always be people who depend on an overarching power structure (A government), and depriving them of that desire is still coercive. Under this decentralized Federation anyone would be free to shop around for any Government they so wished for, rather than forcing an entire geographic area to submit to one ideology.
Your idea is a massive improvement over the current system and probably more likely to happen than "pure" anarchy. However, I take exception to your argument that somehow people who depend on government will be coerced in anarchy. If there are people who are so dependent on government to tell them what to do and make decisions for them there will certainly be a market with people providing those "services". It's likely they will not even have to pay for them as there will be plenty if sadist, power hungry volunteers who will be willing to control these people's lives.