The formula features \$C\$ in the \$1/C\$ reciprocal configuration because in fact the impedance of a capacitor to the flow of AC current in fact decreases with increased capacitance.
For instance, a 1 \$nF\$ capacitor will not pass 60Hz AC very well at all; it appears nearly an open circuit to that frequency. A 100 \$\mu F\$ capacitor, much larger, passes 60HZ AC much better.
Now a stretch of copper wire conducts; it passes not only very low frequencies very well, but even DC. So does that mean that, paradoxically, a wire is a very large capacitor? No, it doesn't. A piece of wire has almost no capacitance at all; because it conducts, it cannot spontaneously maintain a separation of charges. Wire conducts very well because it has low resistance.
We can model a wire and a capacitor it like this:
simulate this circuit – Schematic created using CircuitLab
That is to say, a wire or a capacitor can both be be modeled as a resistance in parallel with a capacitance. (If we presently cared about inductance, we would add that also, and for completeness we would include an inductor model.)
A wire has a very low capacitance, which means that the C branch of the circuit has a very high \$X_C\$ and therefore very high impedance. Therefore all the current flows because of the low resistance; effectively, the tiny capacitance is shorted out by the low resistance.
A capacitor is basically an open circuit; it blocks the flow of DC, except for some small leakage. That leakage can be modeled as a large resistor shunting an ideal capacitance.
Parallel impedances sum using the \${1/Z_{\text total} = 1/Z_1 + 1/Z_2 + ... + 1/Z_n}\$ formula. Wire has a very low resistive Z, and so that vastly dominates over its huge capacitive Z. A capacitor has a relatively low capacitive Z, which dominates over its huge resistive Z.
So in the diagram on the left, the overall Z is that of the R branch, and in the diagram on the right, the overall Z is that of the C branch.
In other words, we can explain everything using the principle "electricity takes the path of least resistance impedance".