Hahaha, I don't think I have Stockholme Syndrome... but I guess all sufferers say that.
What about all the people that worked on Cowboy Bebop on Netflix? It was cancelled after one season because Netflix couldn't justify it with the numbers they were seeing... but it was also pretty popular online with the exact demographic that enjoys torrenting. Firefly is another great example.
It's just basic economics. If people aren't paying for a thing, then there is no incentive for people to make that thing.
In terms of private companies running public utilities, you're forgetting about the huge cost in infrastructure that's required up front. A train network doesn't usually make money itself... the cost to build tracks and train stations and boom gates, etc is way too huge for any company to take on initially... but a good train network increases the productivity of the local economy by a lot - so it's better for everyone to have a good network - but no one except a government funded by tax dollars could afford to build it initially.
RE: Flat Tax: 5%-10%