Power is power. Whether it be government, corporate, or criminal, power can suppress. The state is subservient to me by design. No other power is. Of course, the state isn't wholly subservient to me, and it is very far from perfect, but it is in actually designed to serve me. Yes, if I am a potential customer, corporate power might bend to me, but only so far as that it can turn a profit from me. Corporate power bends to the state, and criminal power bends to violence and the state. We can have a healthy and subservient state. We must if we are to make sure that our rights aren't suppressed by other powers. IMO, "the nature of man" is the primary litmus test when designing government. That's why I am skeptical of libertarianism as much as communism, IMHO both are very fragile when exposed to the nature of man. I agree about avoiding laws that destroy personal incentive. Keep people moving forward, and build a sense of purpose and growth.
A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned - this is the sum of good government....Thomas Jefferson