Maybe his point is that the amount of government required to protect rights is actually quite large. There's a general assumption in Libertarianism that it would be small, and he's disputing this.
This argument is actually interesting, but I didn't get the slightest hint that it was what Zed was really talking about.
It's probably not, but it would make sense of why he describes libertarians as "corporatist". He's driving a wedge between small government and the defence of natural rights, and assuming that libertarians would choose the former over the latter.