Local rule and general government are two different things. Local government is specific to neighborhoods, settlements, workplaces, small numbers of people and folks who all know each other. All other government is general Government. Direct democracy is possible at the local level. It is absurd, or impractical, when dealing with large numbers of people. Most forms of government can be made to work at the local level. Indeed the survival of a local people is contingent on how well they govern themselves. In the United States we advertise ourselves as democratic, but we don't practice functional local government well. And we suffer as a result. Other countries don't either, but that doesn't mean we can't do better.
Local government should be a right, a duty, something entitled by our national charter and integrated with general rule. And the same should be true with General Rule. The Founders did not envision States and Federal Government in constant opposition when they setup our National Charter.
Both Alexander Hamilton and James Madison in the Federalist Papers saw the relationship of the Federal Government to the States to be envisioned as analogous to that of the States to the Counties. For example Madison says in Federalist 46:
"The States will be to the latter [Federal Government] what counties and towns are to the former [State Government]." [Fed 46]
Hamilton, likewise assumed integration and collaboration as necessary for good information transmission. Hamilton Notes in Federalist 36:
"If any question is depending in a State legislature respecting one of the counties, which demands a knowledge of local details, how is it acquired? No doubt from the information of the members of the county. Cannot the like knowledge be obtained in the national legislature from the representatives of each State?" [Fed 36]