This is, of course, high-IQ homogeneity versus low-IQ diversity.*
San Francisco would be just fine if it were populated by, say, 100% ethnic Japanese. Put another way, if Tokyo suddenly began to emulate San Francisco's law enforcement, or if China became less authoritarian, people would not start robbing stores or using hard drugs in the streets.**
Authoritarianism is only necessary when either the government or the people are bad.
*Yes, culture also plays a role.
**Such behavior would increase, but not significantly.