I understand what you are getting at, but as stated you have a tar baby thread. Folks on the right will wax apoplectic about the evils of big government and those on the left will get defensive.
For myself, self-appointed spokesperson for the Left Opposition and Spartacist League, charter member of the Joseph Schumpeter school of humility, dedicated dilettante, and occasional economist with way too much time on my hands when not saving the world; this is a no brainer.
Large agglomerations of power, be it economic, social, religious, or political are inimical to economic growth and equality, destructive to liberty, self-perpetuating and mutually reinforcing evils and especially to be resisted when they tend to be passed to new generations.
Command mechanisms are only effective if very narrow circumstances; market mechanisms (not finance, or crony capitalism, monopoly and monopsonistic behavior) are superior. Regulation is necessary to address externalities and allow markets to work properly. The absence of effective regulation ("regulatory capture") is a a necessary condition for the formation of monopoly power.
Economic institutions are social constructs just like political and religious institutions, family and social relationships, and legal systems. When ossified they become non-functional and destructive to their original purposes. They either evolve or die. Anyone claiming they are immortal and unchanging is either a crook, delusional, or incredibly naive.
Cant and ideology of all kinds are symptoms of laziness and weak minds. The solution to bad public thinking is robust discourse. If you won't try to learn how to persuade, stay out of the debate. You are only engaging in intellectual masturbation. When large numbers of people persist in saying the same thing over and over without responding to others, it's a circle jerk.
To answer your question directly, good government is effective government responsive to the needs and will of the governed. It can be any size, is not necessarily scalable, but does have a tendency to become unworkable and inefficient with large size. The challenge in any setting, government, business, or social, is to get organizations to behave as if they were small organizations responsible to people they deal with on a daily basis.
Increasing size makes waste and corruption easier. There is a way to combat this. It involves realizing the dynamic that the concentration of power is self-perpetuating and liberty and opportunity require constant efforts to offset this tendency. This is not a static game; do nothing and we will have a feudal society in 25 years, where everyone knows their caste.
Finally, reason is not a shield to cower behind for protection; it is a sword to assault the high ground. Life has a bias for action. Try to protect what you have and you lose it. Try to advance freedom, opportunity, and justice for everyone and at least you get to live as a happy warrior.