Around here I have a backyard washing machine, a backyard grill, a backyard clothesline, and my neighbors have backyard childcare, backyard parking, and a backyard motorcycle. And actually
inside my house I have a flush toilet and an oven.
Your assertion seems to imply that if instead I had to wash and dry my laundry at a coin-operated laundromat, eat at a cafeteria table with all my neighbors, and piss in a portapotty down the street, and my neighbor's kids were taken away to live at a boarding school, while he had to ride the bus to work instead of driving, that would be evidence of successful policy!
We clearly have radically different definitions of success. Yours seems not to be well thought out.
The problem with backyard furnaces was that the steel they produced was not just expensive but also inferior. If you could plug in a Tabletop Minimill that produced ingots of specialty precision steel alloys to your order, ranging from maraging steel to tool steel to nitinol, and which was also cheap to operate, that would not be an economic policy failure. That would be an enormous success!
Your generalization that any kind of decentralization amounts to collective action failure is wrong. Some kinds of decentralization do; my household water pressure tank is decentralized because of collective action failure, for example, as I explained in https://news.ycombinator.com/item?id=45487610. Others don't. We have to analyze the particulars of each case. I've written at https://news.ycombinator.com/item?id=45487051 a bit about the particulars of this case.