How exactly has it been a "disaster"? Dozens of libertarians have been elected to the state legislature where they have not only stopped bad legislation but have actually rolled back government in several important arenas. The FSP has been an enormous success thus far and it is becoming a bigger one every day.
The FSP has been a huge success but there is a huge population of libertarians who won't move there because of its location on the east coast. With wyoming having a small population and the amount of people that want to be part of a project like this I think having another state would be beneficial. As for those of you that don't like Wyoming I think you need to see more of the state, it is easy to be turned off when you have only seen the desolate parts. Monatna is another good choice but the point is to concentrate the population.