That's representative democracy for you. Heck, even China faces the same issue, but they get to make it a competition between provinces, on who can win the favor of the emperor. Helps for them that the emperor has supreme authority though.
Sounds like a narrow interpretation for representative democracy:) Maybe I'm stretching/mangling the golden rule but "do unto others as one would like others to do onto Mainers."
No, that's the incentive this specific system creates. There are democratic systems which do not suffer from such hyper localism. Such as the German mixed member proportional system.