That sounds similar to what I've been working on for over a year now. The idea is that government does not need to have discrete borders, can rather exist independently of borders wherever its people are to some extent. Unlike sov-cit style approaches to government or other anarchist-like approaches to voluntarist government which I'm not optimistic about, the network states has very real strength in numbers that give the effort the needed critical mass. Just because something isn't tangible doesn't make it a delusion... but certainly an abstraction. And, just because states have been used for mostly unjustified violence in the past, doesn't mean they have to be in the future. When two people are physically fighting, it was almost always because one used unprovoked violence on the other, and that should end. And when a government person is one of the two, it is usually the government-associated person doing the unprovoked violence.

I believe the world will adopt a spiritual revolution of government by love instead of by force, and internet-focused governments will be part of that leading edge. In my signature I have a quite substantial plan laid out for that kind of idea, and am still waiting for someone to do a substantial review on that, very little has been said about it even though it represents enormous amounts of time on my part.