Localism is a great concept, its definitely part of the liberal vision. Devolving power closer to the individual. Unfortunately it is offered as a panacea for so many problems and often as a way for people to get what they think is best.
We appear to fail to comprehend the most democratic institution of all- the free market.
Everyone who takes part in the market shapes its outcome, everyone gets a vote, even if they don’t realise it. It removes power away from any particular group, be it local government or a large corporation.
Tim Worstall has a good example of this, the problems of representative democracy and how often the market gives more freedom and more democracy.
As liberals we need to remember that the market offers so much which government, at any level, cannot. It is the job of the liberal to enable these markets and to ensure that in essential matters they are open to all.