Interestingly, the modern US military base still often resembles a company town. While not perfect, my impression is that life isn't worse then off base.
You get promoted, you're now given duplex housing in the NCO housing area. You now have a yard. Your grass grows too long. The military police ticket you, and notify your supervisor.
You goto the store on post. A coworker is there. He's with some girl who isn't his wife.
You goto the dining facility. You have to go to the dining facility because your paycheck is automatically deducted $300+ a month because you are forced to have a meal card, regardless of how often you eat there.
Just a few examples from people I know. Everyone tries to get statement of non-availability so they can live off base.
I guess the ideal situation is when your goals align with what the company wants out of you.
For example, California could presumably make better housing decisions if existing property owners didn't get a say.
That said, the weaknesses of dictatorships obviously apply equally. A benevolent dictator leads to great happiness; a terrible one leads to hell that can only be overthrown by revolution.