Mao, durring the cultural revolution thought the same thing. That villages could be doing all their own metal work. No one needs a major steel or iron works so break those up and let things be produced locally.

It backfired spectacularly.

There are things that can only be done at scale (steel). There are things that you can let have more linear growth as you scale (accounting), IT.

You get very interesting things when companies get very large. Bell labs, gave us unix (that ATT gave away cause it was a monopoly). Xerox gave us the modern GUI. ML foundations emerged out of google. The funding for 23 and me came from google founders and helped push squencing (capital into that market).

Innovation tends to come from taking smart people throwing piles of money at them, and letting them do their thing.

This was the realm of the aristocracy, then the university, then the government and now it's in the hands of private business. Everyone may hate on musk but rockets that land is progress that got made because he got stupidly rich and beat the incumbants.

If you want something different, you can have that. You can start your own company, run it in the style of Mondragon (cool corp go check them out) and claw your way to the top.