If the total miner reward per block is $10 how much hashpower do you think you will get?

A government can then buy a bunch of cheap ASICs and destroy Bitcoin?

No

Yes. Or you, or anyone else.

Plus governments can seize property within their jurisdictions. That danger you point out is always present regardless of miner compensation.

If there are many many miners with many thousands of ASICs spread all around the world that improves the situation, don't you think? Compare that to just one just mining all blocks in his apartment with a single ASIC and getting paid the totality of fees the network produces: $5 per block.

Yes, of course. But I see more likely that in the far future block fees will be worth more than the current fees + subsidy (just like the 50 BTC subsidy of 2011 was far less valuable than today's one of 6.25), not that they'll be worth $5. What's your view of the issuance schedule, then? Do you see it as too harsh?