I understand your point. Much of what is called Oceania functioned at that level for a long time and some of it still does. The variety of government of the Greek City-States would also be a good example, along with the City-States of Renaissance Italy. However, as a world government it lacking, would it not be called Balkanized?
Basically, where would the cut-off be between government "0", no government, and government "7", Balkanized?
No. Balkanized is several interacting states.
If the local population centers are non-interacting, and local only, it's functionally different. No one is dealing with abstract hierachy in a no-government. Each vllage operates on tradition and concensus, independent of the others.
In a balkanized, there is a centralization and hierarchy... and axiomatically, hostility.
All above-3 governments require multi-level systems.
Level 0-3 do not. (but they do benefit from it).