Ethereum (L1) focuses on the platform and runs on L2 such as Arbitrum
Ethereum (L1) is dedicated to being a platform and is operated on L2s such as Arbitrum. It is recommended to read public.icon as the first step. Essentially, Ethereum's Layer 1 is only used for data storage and is referred to as OPU, which includes courts and other entities. In general, everyday activities are carried out on L2.
Ethereum, as an L1, has successfully implemented the concept of Government as a platform. It is important to note that L1/L2 in this context has no relation to L0 Mass Country and L1 Information State.
In the past, L0 Mass Country has been carrying out the role of Big government, while proclaiming the era of "government as a platform" and gradually being replaced by the private sector. Meanwhile, Ethereum, as an L1 Information State, has taken on a significant role as a platform for governance. This situation is quite challenging, as mentioned by tkgshn_.
The recent Renaming of Eth1, Eth2 has provided more clarity on this matter.
In summary, Ethereum can be seen as a nation in itself.