> I feel like the dominant model of town organization in the USA leaves much to be desired.
What is that dominant model?
I've lived in Massachusetts and California. In both states what's common is that the town decides (pretty much "has decided" at this point, esp in Mass) to organize itself, writes a local charter, and has local folks run a council. Town hall meetings are open to everyone. The council members are amateurs. School districts and utility self govern and are rarely completely coextensional with towns.
This can go wrong, of course, for example in Palo Alto the city managers weren't given enough oversight and overstaffed with middle managers; also real estate interests can take over the council for a while. But by an large it's not that different in principle.
In California, in fact, most of the state isn't part of organized towns; most "towns" are just vaguely defined areas under the county rules; various groups do things like run a water utility, manage the local park, etc. In fact barely a quarter of the counties have charters; most themselves run under default state rules. So that's much closer to the Arden idea.