You are bringing up some interesting points. We will always need government workers, but sometimes these workers become redundant. Unlike the private enterprise, these workers are kept on the payroll too long. I have a little anecdote on that matter.
Part of the problem stems from our slow legislatures. If laws could be created, amended, and rescinded as the needs of society change, maybe government would not have so many redundant workers.
Another part is the power accumulation instinct many of us seem to have. Little empires do form in bureaucracies, which often thwart the well-functioning of civil service. Maybe the example of the TDG, with representatives being more motivated by service, might rub off on the senior and intermediate managers of the civil service. I might turn this thought into a TDG essay.
If the public believes the civil service is efficient with the resources it is granted, there will be less of a political force to eliminate it.