I think when we think about our social fabric and the empowerment that individuals feel, that this is more of a theoretical rather than practical argument. All of the disenfranchisement, the feeling that your individual participation doesn't matter, the inability to steer the goals of the organization around your individual opinions, these are all just as present in a large state.

Sure a democratic government derives its legitimacy from the people's will but not from your will, and that is the role of the small community organization.