Had similar thoughts, for example is there anything we would like to be inefficient or is capped by some invisible bureaucratic inefficiencies, anything we would want the state to actually do?

Relating to your charts, maybe efficiency acts as the speed of the system, so increasing in efficiency would increase the emergence of underlying system problems. (Suggests all systems have a beginning middle and end)...

Interesting thought if we apply this to a technocracy that is achieved through total surveillance to maximize efficiency then maybe technocracy will never be stable, it would accelerate to the end stage quickly in less than a generation and technocracy is probably the end stage of centralized governance models.
(Also suggests centralized governance models are inherently unstable and were never meant for long term use, only use in case of emergency.)

Visualized as a chart it would just be a blow off top, when the base pair goes to zero.