Nothing is more dreaded than a bureaucracy of local busybodies. Democracy at the local level is great in theory until you have to live under its tyrannical, petty, and arbitrary rule. Sure, you might get lucky and live in an area with a good HOA, but that can change on a dime with a few new neighbors. Time spent politicking on a local level is time you could have spent making a difference on the national or world stage.
Eureka is and will always be run by Simone and Malcolm Collins. All community rules are ultimately set—all disputes resolved—by them. While not perfect, this system allows you to vet the personalities of the people who will always be managing conflicts (or hiring those who will) before moving and removes the risk of a busybody gaining control of community governance.