I think there is no such dichotomy. Socialists recognise that capitalism has brought us a globalised world and as such any solutions to its failings must likewise be global in scope. This doesn't mean however that socialists therefore advocate a centralised society.
Subsidiarity is a somewhat expensive way of saying that all that can to be done locally, should be done locally and things should only centralise there where this makes sense. In my opinion, subsidiarity is a democratic principle.
Given your American spelling (the "z" gives it away), I should point out that subsidiarity is distinct from home rule. The latter tends to cut up large bodies into smaller pieces, like in the case of the United Kingdom, where such cuts are made along national lines, causing all sorts of issues. Importantly, it divides the working class and therefore I oppose it.
Another dimension to your question that is undoubtedly at play here is the historical experience of the USSR which was of course a very centralised society. I would argue though that it was neither socialist nor indeed have a planned economy (a "target economy" would be a more fitting term, given the erratic and zigzag nature of the bureaucracy commanding it). But I'll leave that just touching it as it may not be what you want to discuss.




