Local privacy is arguably far easier in a city, or in a crowded digital space. It all depends on the context of who you're trying to hide from. I'd much rather trust my privacy to Apple and Amazon if I wanted to quietly buy things no one else in my neighbourhood knew about.
More or less I'm advocating a distributed social credit system instead of a centralized one. In fact I'd say "distributed social credit" is a pretty good term for the social conditions we have spent most of our time evolving in.
Both small towns and big cities have governments. Social norms can include being heterosexual or following a specific religion. Not conforming to those expectations can have physical consequences too.