I wonder why nobody has mentioned the most obvious logical fallacy of this reasoning (or someone has and I've missed it?)
Everything said in the article above can be said about any property whatsoever. There's a tier-one owner - the state, and tier-two owners - people.
In this logic whatever you own - from a land plot down to the last button on your shirt - belongs to the state because you can't protect it from the state.
Hence, the state should confiscate all your property down to the last button and lease it back to you at "market rates" (though there can be no market rates in a monopoly).
If you found the idea to make everything state property absurd, it's no more absurd than the idea to make land state property.
If you found it appealing, you're not an Anarcho-Capitalist, but a Khmere Rouge.