Think of it like this, if the state is the expression of power by one class in order to manage the conflict of the powerless class or classes then what will the state do when there is no class but the working class? Menial bureaucratic stuff for the basic management of resources. We could argue it would be a "state" in some form and I'm fine with that. It would not look much like the state we have now. After it has "withered away" it will by it's nature transform into something we can only begin to comprehend but to the people who experience it will seem like a natural evolution of it.

Additionally, the thing in which the person quoted says about settlers and their activities is absolutely actions by the state. The state empowers a group and that group then enacts the will of the state. Those are state actors. It is important to understand that the "state" and the "government" are not one and the same. The government is always the state. The state is much much more than the government.