>We really have a societal problem in that we allow private entities to do things we don’t allow government to do.

It really isn't, given that the government literally has a monopoly on violence, and therefore it makes sense to have more guardrails for it. That's not to say private entities should have free reign to do whatever it wants, but the argument of "private entities can do [thing] that governments can't, so we should ban private entities too!" is at best incomplete.

>Furthermore, the issue is exacerbated by then allowing governments to bypass these issues by then just paying private entities to do the things it can’t do as a proxy for the same functional outcomes.

Again, this is at best an incomplete argument. The government can't extract a confession out of you (5th amendment). It can however, interview your drinking buddies that you blabbed your latest criminal escapades to. Is that the government "bypassing" the 5th amendment? Arguably. Is that something bad and we should ban? Hardly.