I guess you could set it up that way, but then you create the problem of competing authorities - it's the same problem that the internet has with DNS. At some point, it has to have a single source of truth. The blockchain itself isn't enough when what is recorded on the blockchain is potentially not what the actors intended (or is what a criminal intended in a fraud scheme).

Competing authorities seem like a feature not a bug. It allows for experimentation and evolution of governance models. International law works this way and is what allows people to “vote with their feet”. There is no actual requirement for a single source of truth.

That seems kind of different in a way, the different authorities cover different countries where laws are different.

It almost seems like to make it work you would need...regulation.