Does Denmark still have mail delivery for "other items" like small are large packages?

I would presume one could still send a envelope with a letter inside it located inside a bigger box or bubble envelope? One could even use the service to ship a fully encrypted USB or HHD if one wanted too.

In Canada there is talk about ending the national funded postal service as well (this one delivers letters predominantly), you can use it to ship larger items along with standard envelopes.

Its a strange idea to me though as people always need to mail things, so if the national postal service is shuttered then a private postal service will need to step in.

Not true What happened is that the state supported postal service company, Post Nord, will no longer deliver letters however some other private company which was already delivering other packages, will start delivering letters instead of Post Nord.