See 'The Mythical Man Month', SpaceX vs other aerospace companies or the writings of R. V. Jones on the advantages of keeping intelligence agencies small.
>Ok, a handful of people could stage a coup. Then what?
I agree staging a coup is not the same as running a government. Not sure what you point here is.
>You get the choice between large, effective, and open; or small, ineffective, and clandestine.
The current choice is between: large, ineffective and semi-transparent or large, even more ineffective and semi-opaque. I agree with Assange on this.
The danger is that we could get small, effective and truly-opaque, but it is unlikely to happen due to political concerns.