Caveats: I haven't played Freemarket. I haven't even really read any versions of it. This is based entirely on previews and third-hand accounts, so I might be operating in error here. Also note that this is basically a personal reaction to it; tastes vary and I'm not really trying to sway anyone to my point of view.
So. Freemarket. I read about it and I think "Hey, this looks pretty neat" and then I read some more and I think "Hrm something is not quite right here" and even later on I think "What fresh hell is this?"
So. What is it about Freemarket that strikes me as dystopian? I had to dwell on this for a bit, but I think I've narrowed it down.
The premise of Freemarket is, to the best of my knowledge: "Your worth is determined by your level of public approval."
That's something I personally find objectionable. To the degree that it is morally repugnant. It contradicts some important things I believe in.
Of course, that doesn't inherently make it unsuitable as an rpg setting. No one wants to pack their bags and move to Apocalypse World either. But it would certainly have a deep impact on how I would play the game, and I can imagine how much tension there would be with players who take a more utopian view of the place.
But feel free to drop by my orbital any time. It has all the artistic integrity of American Idol, the high fashion of Crocs, and the innovation of FarmVille. If you see the Empress Paris Hilton, be sure to say hi.