That sounds too extreme. I like Australia where states (ok much less populated than US states!) have certain building powers esp. to build rail infra but local can manage planning rules pertaining to an area but within a state level framework.
Some towns for example have laws against leaf blowers in a state where leaf blowers are unregulated. Some towns ban certain dog breeds.
I liked the government structure of the ACT when I lived there with a territory government that also had all the local government responsibilities for bins etc.