Self governance is a favorite idea of those wishing to leave the binds of national or regional level control. The idea that man can control himself is reinforced by people who go without national or regional contact and survive just fine. The issue with this reinforcement mechanism is that the controls put in place that sheltered them to allow such an experiment are the same ones that they would cast aside.
Individuals are generally self seeking, so when you say self-governance, I see a lot of people disagreeing about what is appropriate. I think this would cause a lot of problems for society and those that live next to each other. I believe this gives a person to much freedom to do without thinking of others.
An AC from here somewhere here in the United States posted the following comment today. “I'm absolutely convinced people are incapable of governing themselves.” A couple of centuries of self governance here in America had completely proven otherwise. Self governance is not only possible, it gave us the freedom to become most successful nation on the planet. BUT that doesn’t mean it will last forever.
Government, especially in America, is about concepts where we rule ourselves. When government fails, do we blame elected leaders or do we blame voters who allowed those people to gain power in the first place? Self-governance isn't a terrible idea because sometimes ordinary people know how to run things better than a bloated bureaucracy.
No, it is not a bad idea to have any type of self governance. This lets the people decide for themselves what they can or can not do. I think any type of government will work as long as you have people who know that they are doing and are fair.