I think it is important to know your neighbours on some level. It means that you know that whatever happens there is somebody nearby who you can call on if anything happens. I live with my grandmother who is 84 and I know that if she gets into trouble while I'm out that she can call on the next door neighbour to help. If I run out of sugar I can go to my neighbour and get it.
Just because you know your neighbours doesn't mean that they come bother you every day asking for stuff. Its really only when they need something or if you both happen to be outside at the same time. I've got two examples one more serious than the other.
1) My grandmother and her brother decide to walk home from a party around the corner at night (idiots, I know). Halfway down the street his legs give way, a couple of guys who live up the street who I've never met, help him to the house, they go home. I manage to convince my great uncle to go to the hospital, I need help getting him into the car, I see the light is on across the road and I know that I can go over there and ask for help.
2) I'm driving home and I notice that the guy two houses up has parked his car on the street and left his lights on. Because we vaguely know each other I know that it is his car and go and tell him he has left his lights on.
You don't have to have people over into your house, you don't have to talk to them every day. So what if you have to small talk once in a while. Does it really hurt that much? Knowing your neighbours is about safety and security, plus if you know them and are friendly they are less likely to call the police if you make a loud noise.
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Everyone looks out for everyone else just the same, but we don't have to know eachothers' names. I rarely give my name to anyone unless asked for it or introduced, and I'll admit that I bristle if some stranger interrupts my reverie at the train station to comment about the weather.
Everywhere I've lived (except my early youth in Detroit), neighbors didn't know eachother, but they still came together when someone needed help.
Silly Aussies and their silent "u"...I suppose its colours as well. eh, mate?
So, get friendly with your neighbors. You never know when you might get a free beer out of it.
It would also be interesting if towns started to develop over time to harbour specific cultures (almost along the lines of what Neal Stephenson proposes in Snow Crash and The Diamond Age). What if a town started pushing itself as a geek town the same way that towns nowadays might push themselves as a football town? What if instead of trivia night at the local bar, there were board game or sci-fi nights? What if you could move to a town in which everyone was mostly just like you in terms of values and interests? It's a bit of a shame that these are also the sort of shifts that take generations to happen.
The sucky part about this argument that Rym and Scott had was that while I agreed with Scott, he was in such a bad position because of his lack of effort and his inablity to talk about why community is important because he had no recent first hand experience with it. God, next time you guys talk about living in a community put someone with some experience on.