"Libertarian Socialism" and other non sequiturs
There are so many problems and manifest contradictions that leap off the page it is difficult to know where to start. The core of what makes this so wrong lies as usual at the meta-contextual level. The problem is one of the distorting lens of the writer's world view, based as they clearly are on utterly utilitarian principles. Hain says libertarian socialists are characterised by a "refusal to accept that collectivism means subjugating individual liberty", whereupon he follows with an article which lists the many ways in which his socialist system would in fact do precisely that.
The core of Hain's view is that politics, which is a euphemism for 'the control of the collective means of violence backed coercion', is the essential core around which 'society' exists and interacts. Thus when he says society must be 'completely democratic', he means society must be completely political. Yet the argument that it is only by this that individual liberty can be realised falls at the first fence by virtue of the fact you cannot opt out of a political society and particularly a democratic political society: if my neighbour gets to vote on all aspects of "any arrangement by which people organise their lives", then clearly my individual wish regarding what I may do with my own life is by no means my choice unless that choice is quite literally a popular one.