I see your point but it depends on heavily on the servers. Some local servers are very good and some are so bad that you should stay away from them.
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If the goal is "reviving democracy", you need to go where the people are and that's not the Fediverse.
That means sticking your toe in the local Facebook/Next Door and that can be problematic for a whole host of other reasons.
Threadi is too small for that, if it had 2 million MAUs (50% English / 50 % other langues), what you are proposing would be semi-viable.
Between Lemmy / Piefed / Mbin, we have something like ~50 K MAUs tops.
So the recommended unit can be the nearest server with any critical mass. If you're in Greece you get pushed to whatever's the leading .gr server. Ultimately it doesn't matter much since we can all interact with everything via federation. My point is that this might responsibilize users more, and encourage communities to overlap with the offline world a bit more - a place where community is very much needed right now.
But then you have the question of what do you define as critical mass and which specialized instances to exclude.
Don't get me wrong, I support your idea and I generally think an instance should always be pre-selected for a new user (with an option to pick your own). Some of it should definitely be based on geo/regional factors.