Enlighten me. Who is "piling" people into these smaller and smaller areas? Is there some great man-pile conspiracy forcing people to cram into small cities or be slaughtered? If you do not want to give up goods produced by mass coordination and economic calculation (everything except the most simple, rudimentary tools), then you need a theory of social production to employ. That means you need to tell me how, without markets, without central planners, people could coordinate their efforts to provide production goods. Or, you are advocating for a society where the most advanced technology possible is things like nets, spears, and fur clothes.