The Seasteading Institute has thought of all the common criticisms of their approach and tried to answer them. Whether you think they succeed is up to you.
By the way, Patri's group has raised $500,000 from Peter Thiel to pursue their ideas. If you live in the bay area, you can attend social meetings of the Seasteading Institute, though I'm not sure what goes on there. Patri has very avant garde facial hair.
Here's the FAQ: http://www.seasteading.org/learn-more/faq
Here's the book-length treatment: http://seasteading.org/seastead.org/commented/paper/index.ht...
By the way, Patri's group has raised $500,000 from Peter Thiel to pursue their ideas. If you live in the bay area, you can attend social meetings of the Seasteading Institute, though I'm not sure what goes on there. Patri has very avant garde facial hair.