You make a good point about distributed distribution. Would have to be very local to avoid this wildfire problem as PG&E is doing (shut off power instead of deal with actual issue). The wildfire problem is one that is decades in the making and coupled with poor open areas management by government policy in general and not just the power company, in particular not allowing periodic fires to burn out underbrush. I had this huge pile of brush in my backyard. When it burned it was very dangerous. Now I make sure to do more regular smaller burns as giant burns are not easily manageable.
I like the solution of small Hitachi style safe nuclear reactors that service neighborhoods of around 2000-10000 people, can't meltdown or breech, are useless to terrorists, and require no maintenance. Doubt we'll go that way though.