Thanks for the links, facinating. Micronations are an interesting concept, except from Nauru, I don't know of many of them that are successful. The people at Nauru has even attempted to buy new land since they're looking to relocate some or all of their people.
I like your utopia OP, but where to put it? You say no taxes, but who owns the land and under what jurisdiction? Places without government are some of the scariest places I have ever been. No government would mean anyone who wanted to could just come and take it all. There is always authority and power. It may not be a government but someone is in control of every inch of this planet. Makes me wish I was a caveman.
Well, of course, that's some of the beauty of it. Live or die free. Like in the old times. But of course, when you come down with a bad case of some easily curable medical condition, I assume that a modern hospital is not a bad idea.
A self sustained community would need functions for most types of services, and again those services would be dependent on buying stuff from the system. There are already numerous places in the world were you do not pay tax. Somalia is an interesting place, but with the amount of violence, any white man would stick out like a sore thumb.
While it might not be possible to exit the system completely, living somewhere peaceful and being self sufficient to a degree I think would make for more happiness.
This "crazy system" already has a name, it's called "living off the grid" and people do it all over the world. You don't hear about them, though, because get this, they are off the grid!
Off grid as in having your own electricity and your own water facilities does not mean that you're necessarily disconnected from the internet, but naturally those who do not care of the internet, you never hear of unless somebody documents it somehow. There was a series with a man building his own cabin in the woods of Alaska that was quite popular on youtube.
The amount of work involved should not be dismissed, as many has failed being to optimistic about their chances of self-reliance. Also this is an interesting intellectual pursuit, to learn and thinker with the idea. Everything starts with an idea
It is somewhat scary though the amount of poision that humans has poured into the ecosystem polluting even fish and animals in remote areas. Perhaps you need to be a chemist to god off grid and be-self reliant lest you kill yourself from feeding on poisoned fish.