How are "many local governments" less dictatorial than one accountable to all citizens?
Because the individuals in that government are your friends & neighbors and as such are much more accountable than some bureaucrat 2,000 miles away. If the laws, rules, and regulations where you're at are unsuitable, you can choose to move somewhere where they are a better fit.
Alternately, you can also choose to change the local laws, rules, and regulations where you're at and have a far better chance at changing a local government than a behemoth centralized bureaucracy 2,000 miles away.
I remind you of the reality of America, instead of your myths
For which you only provide your own myths and opinions as evidence.
The US has been on a steady and increasingly-rapid decline since Progressive policies and programs have increasingly been enacted and promulgated. The correlation between the instituting of Progressive policies and programs and the decline of the US tracks together closely. Take a look at Detroit as a shining example of what 40+ years of Progressive policies and programs can accomplish.