Generally the more democratic a country is, the less hostile the government is against the people, from my observations.
If you decentralise, any damage will be localised and would affect fewer people.
A part of the problem today is that there are massive autocratic powers that have the resources, means and channels to influence any democratic powers. Decentralization in this case means less unity in opinion, and more opportunity for foreign influence.
I dont see a way out of this, because essentially as a decentralized democracy, you are playing with your hands open to the whole world, and trusting that your decentralized people will filter out the noise/influence and make rational choices when they are open to any foreign influence.
This is why we are seeing EU go more authoritarian. There is (rightfully so given the average technological literacy), no trust in that the individual will be able to see through foreign influence. Control of the individual is the only short-term solution.
I believe Switzerland is prospering because the citizens are in charge of their nation, not a select few belonging to the political class and well connected wealthy individuals.
I think having a mostly crippled central government is probably the most realistic alternative but you can see how that is taken advantage of in the US and how it fosters unnecessary discord between people whose interests are generally aligned.