Have you noticed this correlation that all the governments people find desirable are of tiny little populations? And that the larger a governed population becomes the more of a mixture of dysfunctional, corrupt, and/or authoritarian the government seems to become?

I don't really think it's a correlation. It's tough for any given entity to truly represent 10 people, let alone 10 million. And by the time you start speaking of the hundreds of millions, any meaningful notion of representation is just out the window. And now imagine this on a scale of billions, with countless groups that all have largely mutually exclusive views?

And this will become even more true in the future. Imagine what will happen as we start to be able to reach out and colonize other planets. The cultures, ideals, interests, and even language on those places will tend to constantly diverge from that on Earth. To have somebody try to represent somebody without even sharing the same fundamental values is a system doomed to trend towards authoritarianism at first, and ultimately to complete collapse and failure.