Real quick take: Your system sounds swell at first glance. However, I see a few flaws:
- Too many moving parts. The United States has 329 million people and population density is far from uniform. I recently read another proposal that posited that salvation could be found in enlarging Congress to one Representative per 100,000 constituents. We would then have a House of Representatives with 3,290 members. Assuming 100 people in a neighborhood, we wind up with nearly 3.3 million neighborhoods.
- Assumption of participation. What percentage of the people that live in a neighborhood show up at neighborhood association meetings? How many people in the neighborhood then complain about the association board?
- There is a critical flaw in direct democracy. Running a government requires a lot of decisions and most of them are far from glamorous. A large number of them still need to be made in a timely manner. How many people are going to devote any time to the nuts and bolts?
- TDG results in a lot of upward delegation — several levels of it, as a matter of fact. With each level, the needs and desires of the lower groups become diluted and lost. What you have is the governance version of the old game, “Telephone” where a message starts and one end and is passed down from player to player with the last person announcing the message as they received it.
- The United States is a federated republic consisting of 50 sovereign states. The whole theory as based on dual allegiance of the citizens to the nation and to the state. Theoretically the people hold the ultimate power but in practical terms, it’s the states. The federal government can only do what the states allow. If the states disapprove of the federal government, they can change the government’s powers and responsibilities. The states are perfectly free to call a constitutional convention and the federal government cannot prevent them. If three-quarters of the states agree on a change it’s a done deal and the federal government must comply.
You have a very creative idea and one worth considering. However, I think we might need to work on the people themselves for it to have any chance of producing the desired results.