A libertarian view of the world adds flatness to decentralism and concludes that large organizations, like the nation-state, are doomed. This is only half true. Instead I would liken the digital world to indigenous architecture, where local and global forces make for individualism and harmony at the same time. Each house on a Greek island is totally its own design, reflecting the ad hoc needs of various individuals over time. As soon as you use steel and air-conditioning, however, the only way to protect that harmony is to legislate it, relying on zoning laws to do what nature did before.
Most nations are too big to be local, and all nations are too small to be global.
What the Net is doing is forcing all of us into a body of law we do so badly - international law. As soon as there is a means and mind-set to be global, governance should be pushed down into the village and up onto the planet. We see this happening to a limited extent if we look simultaneously at the business and political worlds. Economic forces are pushing toward a regionalization of commerce, and political forces are tending toward the breakup of nations. Bigger and smaller.