I don't think you can fix societal scaling issues by refusing to scale. That's kinda like trying to fix bitcoin by restricting its use to 10k people & just having them do everything on-chain.
I think issues with govt are only partially a scaling problem anyway. Govt also doesn't work well or produce desirable outcomes on a small scale either. Local politics is often extremely corrupt.
We need to break the "political" world up into billions of soverign individuals who can protect their wealth from forced extracrion with some sort of higher layer bitcoin ownership & then scale society with voluntarily funded organizations that will go out of business or get restructured when they fail to serve people.