Government can be decentralised. For decades I've heard people whinge about giving "Power to the people" and here we have blockchain technology that can basically deliver it.
Have a closer look at how steem works. It is more than a social network, it is an economic and political system too! The witnesses are our elected representatives and if they screw up or screw us over, we can turf them out in a heartbeat.
We are closer to a direct democracy solution than you realise. We just need to iron out the bumps and then have the collective will to transition to it.
@buggedout - your comments are inspirational. Glad to hear we're on the same page :)