Personally, I believe the opposite. I think we should do
more recycling separation in the home. Centralization makes sense when there is an economy of scale, or, more precisely, when the economy of scale outweighs the costs of homogenization. With recycling, I'm not convinced this is the case.
Ultimately, the stuff being recycled does have to be separated in order to be made useful again. Doing this centrally lets you automate some of that, but you'd be surprised/depressed at how much of the separating is done by hand. There's no magic separator robot at the end of the line.
Also, the quality of the result goes down. Bits of broken glass get mixed into the paper. This makes the end product less valuable, which sucks money out of the entire pipeline. If it's cheaper to single-stream recycle, but the recycled product gets sold for half the price, you haven't really gained anything.
Some more details: http://www.theatlantic.com/technology/archive/2014/09/single...
In constrast, it takes a lot less effort to separate the bottles from the paper on my kitchen counter where they are already sitting there clean and separated. Single-stream recycling to me seems like letting users add a ton of entropy to the system which then has to be laboriously removed later on. Why not just leave the chaos out to begin with?
What I do think is a real problem with decentralizing and letting everyone participate a bit in the recycling process is that there's no feedback loop. I spend an embarrassing amount of mental anguish on trying to decide if some piece of paper can be recycled or composted. I don't know if I'm doing it right, or how I'm doing compared to my neighbors.
I understand the information tracking would be insanely complex, but I would love some kind of feedback loop so I could do things better. Even if it was aggregated among my whole neighborhood, maybe a little friendly competition between other parts of town to get the best recycling score would help get people to participate.