> Why waste fuel moving organic waste to a central location

The point of this whole post is Fertilizer. You eventually have to collect the distributed waste (or compost fertilizer) to a a centralized place. Caveated that the resulting mass could be decreased, but also lose the opportunity to make compost tea, feeding any edible mass to animals, or vermicomposting to get even richer output.

Also lets not discount the distributed cost to teach millions of people how to properly blend (mix grass with food waste etc), turn (else you can either cause fires or create methane), harvest (when's it done), and then redistribute the output.

Yes we could all become home gardeners, but then expect to see our GDP to decline as Software engineers, Lawyers, architects et al. star doing "farm work" and labor.