Let's not mistake diversity for individualism. We can be diverse, yet share overarching ideals - such as living together peacefully and in solidarity.
We can, but increasingly I see people arguing that we should forgoe those and determine our actions in society based on our own individual interest and market mechanisms.
Not hard to see why a raise in either of the above would result in the other side getting even more extreme in reaction.
You can have societies that are very community minded and govern them in a free way and with a democracy. You can try to govern very individualistic societies with an autocracy.
There's probably an optimum level of accepted dissent in a society, depending on what it wants to achieve, and I tend to think that social democracies come the closest to achieving it, and certainly much closer than most autocracies.
I think there's some truth to this. But rampant individualism also makes society weaker. It reduces a societies ability to collaborate.