I grew up in a town with <1000 year round residents. We had a general store like this. We avoided the general store as much as possible. Some families went as far as getting their mail through another town because the local post office was inside the store.

The reason is quite relevant to this thread. The shopkeeper, his wife, and all the regular customers who sat around to chat while they drank their coffee were gossip hounds.

People valued their private lives more than letting a social circle they weren't involved in know anything about them. Not who sent them mail, and not even what type of breakfast cereal they liked.

"Everyone benefitted"? Nah, I think you've just heard too much "small town community" bullshit from politicians.