> But the design clearly is not fit for where our society is or the direction it is moving, people have much more affiliation with the national entity than with the state entity

For better or worse.

I would argue that government serves you much better the closer it is to you. A municipal government is going to be a lot more responsive to people who live in that city vs the State / Provincial level, who have a much broader constituency. And the State / Provincial level is going to be a lot more responsive to its constituency than the Federal level.

Politics is the direct result of the philosophy of a culture. The more culturally people identify as "American" instead of "Californian", "Texan", "Virginian" etc. the more you're going to see the scope of the federal level expand, because that's what "the people" are asking for.

The problem with democracy is that people don't always vote or act in accordance with their objective best interests.

And not to go off on a tangent, but the cultural attitude towards democracy itself is indicative of my point. Culturally people tend to equate democracy with "freedom" even though democracy is but a tool. A perfectly appropriate tool for certain things (should we spend the city budget on a new sporting stadium or upgrades to our roads?). But there are other matters that should never, under any circumstance, be put to a vote (ex: what groups of people have rights).