i think the overall quality of life of the individual countries would drastically fall if we started balkanization.
i know it's a work of fiction but heinlein's novel friday deals with a US that is basically 10 different countries. hyper inflation, ridiculous borders, constant tension on the borders due to wildly differing ideologies.
and honestly, i think unification is the way of the future, not balkanization. self-determination is great but i think the world is connected enough now to realize that there is a certain standard of living it would be nice for everyone to have, and a certain level of freedom. the more we unify, the more that spreads (i'm talking really big unification, like the EU and the possible NAU). when you balkanize you just set up more chances for some place to fail without the support of other nations.
and sure you can say "well who cares it's not us" but instability around the world has a tangible effect at home.
i just really think it's a bad idea. plus the more countries you have in competition for resources the greater the chances are of war. there's a reason europe started to unify economically after ww2.
plus i think you're looking at the cultural divide in the country as too permanent. cultures ebb and flow and the current cultural divide will close eventually.