I think co-ops are the way to go, but I can understand that someone “just” wanting to purchase the good/service might not see the difference between a co-op and corporation like Amazon.
I don’t think it’s a size issue really, but co-ops generally stay smaller in part due to how they are internally organized compared to a “median” corporation.
I also think that the government actually does a pretty good job at managing things; it’s just their failures are public. Private boondoggles might drive many people into bankruptcy, but they aren’t publicized any more than absolutely necessary.
Oh, don’t worry, open source (or, worse, Free Software) apps won’t be allowed on Android or Apple devices, soon. /s