Welcome to the forum!
This reminds me, in a roundabout way, of a discussion I had here a long time ago with some die-hard idealists of the (imho) wrong type, who tried to convince me that anything below causing physical harm to somebody else was fine; it came up in the context of outright racism of the non-(yet)-physically violent type.
If I’m getting it right, you’re arguing for decentralizing laws in a way that the increasingly bigger communities would agree upon their own preferred set of rules.
This of course raises the question of what kind of rules should be set at what level, and what happens when they conflict (i.e. who overrides whose rules.)
I don’t think it should be strictly hierarchic, either. A small community on the edge could belong to two bigger ones at the same time, thus bridge them.
Over many years, this could result in the abolishment of the nation state, which would be quite the improvement. For one, we would have numerous armed conflicts spread across the globe all the time (humans suck), but none of them could easily escalate to the horrendous scales of the world wars and less well known, but similarly terrible, incidents (e.g. Rwanda not long ago, or what Ethiopia may be heading towards right now.)