Yeah, that's exactly the point. The cross communication between interest groups who govern themselves creates a service corridor between providers and clients. You might be connected to the hospital in several ways, your group at the electric grid maintenance has a treaty with them to provide medical care, the interest group at the farmers market trades food for prescription services, etc.
To prevent collusion, like if all the restaurant owners in town form their own government and vote themselves a big price hike, they are also individually members of the apartment building, bowling group, college board, or volunteer fire department who will flag their restaurant group (I used to call it boycott until i joined steemit) into better behavior.
We couldn't really do this effectively before computers and the internet, but now affiliation groups can flow and change, merge and divide, while members pass into and out of them at will. Everything negotiated on the blockchain.
I'm going to write it up in my story line fairly soon, I have to put in some more background first.
I definitely like where this is going. I can't wait to see how you envision this in your story!