Interesting thoughts. I've often pondered how scalable this really is. For instance, examining it from a US perspective:
A small town could be built on these ideas and function well, I think.
A county could too, but there would be differences among the towns
What about a state the size of Oklahoma? Is it still small enough to maintain integrity and invite competition from other states?
It seems apparent that in any large state, adhesion becomes untenable. There are too many variables of interest, conviction, principles, priorities, resources, etc. I only say this from an oversight perspective. It would seem that governance on a large scale is simply too subject to tension in diversity, interests and abuse.