Naturalization in Switzerland is a lengthy and complicated process with differing requirements at the municipal, cantonal, and federal levels. First and foremost one becomes a citizen of one's community, then of one's canton, and finally of the country.
As of January of this year I have lived in Switzerland for ten years total, which is a requirement for naturalization at the federal level. I had also been living in the same canton and municipality for the previous eight years which more than met the residency requirement for canton Zug. However, applying for citizenship would have required me to remain where I was for at least another two (and maybe as many as five) years, which would have postponed any plans of moving to the mountains. (Also canton Zug with its high rents and low taxes is not financially smart for Americans who must also pay taxes in the United States. Better to live somewhere with low(er) rents and high taxes.)
At any rate, I didn't stay and I relocated to Graubünden instead. If I can manage to stay in the same community, I will be eligible to apply for Swiss citizenship in another five years. In the meantime I will have to be content with the mountains and my permanent residency. I feel that it was the right choice for me, as much as I would have loved to have Swiss citizenship sooner. At least I can vote in the local elections.