I agree with a couple of things you mention there, but not most of them.

Government should only control things that are a "natural monopoly", one where competition is essentially impossible.  This is actually a surprisingly small list if government doesn't stand in the way of competition (telecommunications is a prime example of government standing in the way of competition).  I would put the list as:

- Electricity distribution
- Some (though not necessarily all) roads, highways and bridges
- Airports
- Water distribution and wastewater collection

That's about it.  Electricity generation can very successfully operate in a competitive environment.  Telecommunications can when government doesn't prevent competition.  Many places have very successful privatized public transit (Melbourne, Australia, is one example I've personally had experience with).