Let's Shift Powers
Thanks for the post, Murph, I will look at the articles.
In Montgomery and Prince George's county in Maryland, towns are incorporated, however with much fewer powers than Michigan and the counties take on most important services.
Fire and police protection, bus service, schools, parks, libraries, planning and development review, road maintenance, and more are all country responsibilities. The towns have tiny little town halls, run a few recreational facilities, have advisory review of development projects, and generally languish in obscurity. While this system too has its weaknesses, it does seem more efficient and better from a planning point of view than the Michigan model.
This way you can preserve the emotional need for hyperlocal governance but overcome the weaknesses of local control of everything.

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