There are multiple problems with that. Take something like climate change, for instance. At a community level, there's not a lot you can do. In fact, at a community level, there's less you can do, since a single small, local community won't individually have the resources to do something like, say, build a nuclear power reactor. (Of course, multiple small communities could band together to do that, but then you've just recreated the kind of large gov't that you're attempting to abolish.) Even worse, you're likely to have communities like, say, every city in Texas (other than Austin, maybe) that would eliminate all emissions controls in the name of cheap power. Addressing the problem requires not only national regulation, but international regulation, which goes well beyond the ability of local communities.

You've also got problems with local communities often running roughshod over individual liberties; e.g., cities tend to be much more forgiving of people being LGBTQ+ than small communities, and LGBTQ rights tend to be protected by states and national governance rather than by community governance. (I'm speaking from experience on this one.)

That's why I tend to argue for a blended model, something that has strong protections for personal, individual liberties, while still having a solid framework to address problems too large for communities to deal with.