KiwiNZ: This is a tricky one, in the Wellington Region we are going through the debate as to should we have a super city. There is a case for and a case against and both camps have some merit. Personally I am opposed to super cities. I also don't have a lot of faith in Local Government, I would rather see it dealt with by central Government.
As for Waiheke Island I am not sure that their funding requirements could be met by the residents alone.
I agree in the sense that it should be handled centrally these days, as there are effiencies doing it that way, and costs are shared across a large pool of people. But I am for a supercity because it is better than the current system where you have many tiny councils with so much duplication.