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Why did John Stuart Mill think a state that dwarfs its citizens was culturally insignificant?

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John Stuart Mill argued that a state that dwarfs its citizens is culturally insignificant because he believed the true worth of a state is ultimately derived from the worth of the individuals who compose it.1

Mill maintained that civilization relies on the free play of speculative intelligence and the contributions of creative minds. He feared that excessive bureaucratic power or restrictive public opinion could stifle individual development, leading society to become a "stagnant pool". By treating citizens as passive subjects rather than active, independent thinkers, such a state fails to foster the "free play of mind" necessary for progress. Consequently, Mill emphasized that without the cultivation of individual genius and liberty, a society loses the very qualities that allow it to advance and maintain cultural vitality.1