The state does not wish to serve the people any longer. The state serves it's corporate masters, in return for scraps from their table.
The corporations don't want to serve the people, they want to profit from them. Any actual services or goods they provide are a mere incidental detail. History has shown us that if a corporation can get away with selling dirt instead of food they will do that.
When the media is controlled by a few large corporations, there is no free market. Free markets depend on perfect information being supplied to the consumer. There can never be a free market while there are large media corporations, but large media corporations are an inevitable consequence of the market.
As you say below, if the state stuck to their natural role of providing services that you cannot trust a corporation to provide, like healthcare, it would be fine. Instead, at the bidding of their masters, they manufacture wars to increase demand and exploitation opportunities, they engage in mass surveillance of their own citizens for fear that they may be deposed, they destroy effcient and functional public utilities so that corporations can buy them out and charge more for what was once reasonably priced for all....
The state is indeed corrupt ; but mostly because the corporations have worked so hard to corrupt it. We need a state that will protect us from corporations, instead of falling to their knees before them.