Most likely the whole point is to destabilise and eliminate government structures with the goal of filling the resulting power vacuum with privately owned services. That's what Thiel and his ilk are all about.

The first part of this plan - destruction - is easier than the second half - creation. If they're successful with the second half, people will be worse off because it's a big step towards neofeudalism /strengthening oligarchy. If they fail, people will be a lot worse off because the structures they're destroying are actually doing important work.