I prefer "Covernment" because it also calls to mind "Convergence" (of the three branches of government, and of companies, etc.).
Convergence can also lead to the destruction of the "checks and balances" of a true democratic government.
Convergence of corporations and government for profit (and what some people might consider to be a corrupt convergence of corporations and government) is what some people feel is exemplified in a recent politech post:
"Amtrak provided agents with information such as passengers' last names, their destinations, their method of payment, and whether they were going on a round trip or only one-way. In return, Amtrak was given 10% of anything the government seized."
Other related issues include red light cameras for profit, as well as the military industry (profits from war, terrorism, and anthrax hysteria, etc.).
--S. Mann, 2002.
Acting in the capacity of Assistant Filing Clerk Trainee for EXISTech Corporation.