Small companies or mega companies?

I finished listening to the The Wal-Mart Effect this weekend. The author's main point is that Walmart has gotten too large – or at least larger than we ever planned for when we planned how companies should be regulated. He argues that Walmart with $375 billion worth of sales is beyond market capitalization and beyond the checks and balances that the market is supposed to have.

And this morning I read a Wired article in which an MIT professor named Tom Malone says that large companies will grow so large that they will fall apart and become small companies that can communicate more effectively among each other than a large company can within itself. The article goes on to say that we are seeing this right now. Walmart is closing stores, huge financial companies are falling apart and large corporations are being more regulated, encouraging a lot of smaller companies.

I don't know if I buy it since the Walmarts near me seem to be doing really well and I don't see a lot of new small businesses. But I personally would like to see a world with lots of small independent companies than a couple of megalithic companies.