Roman Empire did not have institutional courts that could question rescripts of Emperor, yet Roman Empire was full of city-states and many of them were "free" as in having various states of privilege. They did not keep the status by appealing to "courts", but to Emperor and Senate.
Anatolia could and did develop city-states. They developed in 8th century BC in the Greek Aegean coastline. And then under Hellenism of 4th...3rd century, spread to such non-Greek inland areas that previously lacked them.
City-states of Anatolia collapsed under Byzantine Empire, in 6th...7th century AD. Cities did continue to exist, but mostly new fortress circuits protected a tiny fraction of formerly built-up area - a governor, a bishop, a small garrison and a modest number of merchants and artisans. The mass of middle-class absentee landowners resident in cities throughout antiquity, and of working class servicing them, disappeared from cities and must have dispersed to villages when city institutions no longer incentivized residence in city.
Under Osman Empire, cities still were small, hosting governors and a modest urban population, not broad middle class with city-state institutions.
Which PoD would allow broader redevelopment of city-states in Osman Empire?