Thanks for responding, Lili.
As you probably know, the military dictatorship of Augusto Pinochet lasted for 17 brutal years, and it ended only 20 years ago. I would expect the scars of such social trauma to endure for decades. As former President Ricardo Lagos put it, "Never again can Chile repeat it ... that rupture in Chile's soul."
So I would suggest that Chile is probably a poor example of democracy in today's world, even with their smaller scale. They're recovering, but they still have a long way to go.
Meanwhile, I would also recommend the work of Leopold Kohr:
You will find that the inevitable conclusion is that capitalism is killing us, because capitalism is the system that demands continual growth — leading to excessive scale.
Lili — Many thanks for a great piece of writing. I think you're missing a crucial insight, probably because it's never been suggested to you:
DEMOCRACY DOES NOT SCALE
The problems of disenfranchisement that you eloquently described are caused by excessive scale. When a nation grows to 310,000,000 people, it is no longer possible to be governed democratically in any way. The solution, therefore, is secession.
There are many excellent secessionist writers in this country, and I strongly encourage you to explore their ideas. You might want to start with Kirkpatrick Sale. Good luck.