So you'd have to go wait in line for hours at the DMV to get your domain names? That sounds strictly worse than what we have now, and would be way more expensive for governments to administer (as ccTLDs would now be a cost center rather than a profit center).
We don't have DMVs here, we are required to have national eID cards, which we can use to log in to government sites to do tax returns and stuff. It's government, so it would cost a lot, but it shouldn't be too much to implement limited per-person domain registration. In USA it would be harder.
Administrative costs - additional domains can and should cost more. You can collect fees from companies that don't want to be reliant on that one guy, or just call it a day, give a domain for free to companies and call it administrative expenses. How much does it cost to run a ccTLD?
