I don't know about flip, but I use bone runes, tea leaves and animal guts. ;)
To a certain extent I agree with both of you, the civilisation we have is clearly unsustainable, and will at some point disintegrate. Although I think it's entirely possible that during the process of civilisation's disintegration we could see it morph into many different forms as surviving becomes a higher priority than thriving. It seems reasonable to believe that some of those attempts at salvaging civilisation could bear strong resemblance to the ideas of permaculture. But I don't think anything like that will emerge without a period of profound crisis, and I don't think that crisis can be an intentional one like an anarchist revolution; capitalism, the state and civilisation are top dog, and they will be until the material circumstances they rely on change - the course of history doesn't change when people convince others there's a better way to do things, I changes when it's impossible to continue with the status quo, and whatever changes happen are a result of our actions not our intentions. So yeah, I think civilisation does tend to be unsustainably totalising, but I don't think sustainable civilization is impossible. However the issue of sustainability isn't the focal point of my civ-critical perspective.
In one important way I disagree with both of you. @Flip - when the mole of civilisation gets whacked, new and *different* moles (masters) will pop up. Capitalism, the state and civilization are not the only masters that exist now (or that could exist in he future). @Steve - a society 'building on equality, freedom, and sustainability' does not permanently guarantee those things. Our current societies are built on the principles of equality before the law and the freedom to be socially mobile, but in reality the extent to which the law applies to us is directly proportional to how much we can spend on a lawyer, and social mobility is a joke. I stand by the point I made that total liberation cannot be achieved socially - a society built on equality, freedom and sustainability like the one you advocate would certainly be freeing compared to what we have now, but it wouldn't preclude domination of the individual.