Neither Frank Capra nor Wendell Jamiesen is really talking about small towns. They're talking about visions of Americas, which used to be and still are found in small towns and big cities. Oottersville and Bedford Falls both exist everywhere.
Frank Capra loved and admired Bedford Falls, although he might enjoy an occasional night out in Pottersville. Mr. Jamiesen loathes and despises Bedford Falls and its inhabitants. If he were to have his way, all of us would be forced to live in Pottersville.
If all of us lived in Potterville, swing dancing the night away, we’d have to buy our manufactured goods from China where George’s kids would die of lead poisoning from the paints used.