I would like to see a system of government that is similarly granular to your suggestion, but on technical lines rather than geographical. I tend to agree with very, very few of my neighbors on some issues, so rather than having to form a geographically local coalition, maybe better representation can be achieved by allowing the like-minded to choose representation across geographic boundaries, or to choose different representatives for different categories.

While we're at it, could we make this hypothetical government's legislature use a fractional (or maybe one-citizen-one-vote) tally, with representatives acting as proxies that individuals could override for specific votes?