If your state has bad laws, you can go to a different state.
Using government as a market has worked very well for both marijuana legalization and gay marriage advocates.
Uprooting your life and moving is nowhere near as trivial as dipshit market fetishists make it out to be for the majority of people.
Historically the latter has been driven by physiological particulars of a state — availability of farm land, coal mines, etc. Has anyone actually thought through how that transitions to a primarily services-based economy?
(Aside: if state governments are a market, then the Senate is socialism, lol)