If I had the time to flesh this all out, I'd do a book on how American cities manage virtually everything at the wrong scale, and this accounts for about 80% of our routine issues. Policy wonks want to policy wonk everything; designers like me see everything as a design problem. But what I've become convinced of is we have a basic management problem.
I find this to be really difficult to communicate, so bear with me (which would be the point of writing something out, right?)
Smaller cities and towns have their limitations, but their local governments are intimately familiar with issues in town, know their constituents closely and are generally very accessible.
As cities grow larger, the population of districts also grows. Sometimes to very large numbers. My district in my city has over 80,000 people in it - represented essentially by 2 people. Bear in mind there are entire towns of half that size with a City Council of 5-12 people. So there's that aspect - the political side.
Then there's the day to day management side. As cities grow, they grow like corporations used to grow - vertically and siloed. It becomes harder and harder for lay people to know who to call, who does what, etc etc. I've seen a number of workarounds tried, with good managers and not so good ones. But fundamentally I see a systems problem - people just get farther and farther away from constituents and needs.
One result is many very localized issues just don't get dealt with well at all. Everyone in the process seems to default to solving problems at the scale of the whole city, when in fact most issues are hyper-local. That hyper-local scale gets problem-solvers in the form of BIDs, CIDs, Place-management organizations, like mine. And these groups often do a great job - because again they operate at a fine scale and are accessible.
But parts of the community without those groups, just generally don't get their issues solved.
This is but one part of a much longer thought train, but over and over again I've seen how we have countless issues because of lack of management at the right scale - a more localized one. And those issues then metastasize and become much bigger fights.
Much of this is rooted in the very 20th century idea that consolidation of governments and annexations would lead to management efficiencies. Because that was the mentality of much of society at the time. Might've sounded good in a textbook or a seminar, but it just hasn't worked.
My gut tells me so much of cities would work 1000% better if we had smaller-scale, localized governance and management. I feel like people instinctively know this or sense it, but we can't figure out how to communicate it well or solve for it.