If ethnic ties were the only kind of ties that matter, then I would agree with you, however, I believe that people can and do bond on the basis of common ideologies. In places like N. America ethnicity becomes the stuff of comfort foods and tales of the old country, but doesn`t define people. Atomization is not really a result of separation from ethnic roots, because it is occurring in the old world as well. It`s a function of the modern way of life which causes people to be more isolated, self-reliant and less attached to people, places and things in order to compete. If labor is a commodity, then it is also subject to competition and it cannot retain any value if it isn`t willing to participate in the game. In many ways, the combination of technological advancement, capitalism and the growth of urban centers are responsible for this atomization.
Monarchies in the oldest sense had a stake in the game, but as monarchies became more institutionalized, they lost touch with the people and hence they were overthrown or rendered figureheads. We look outward for the perfect socio/economic system, but as in a good meal, without good ingredients, you will never achieve success. It is our flaws as human beings that are ultimately self-defeating.