By local industry, you're actually talking about fragmented industry. It's only local to the locals, of whom there are far fewer than, well, literally everyone

By local industry, you're actually talking about fragmented industry. It's only local to the locals, of whom there are far fewer than, well, literally everyone else. Centralization is also densification, which has merits backed by scientific research. It's, in theory, better for everyone - well, for everyone else. Doesn't it increase overall happiness?