Note that you would achieve the same thing by pushing more power back to the states. This is the way the country was designed -- citizens retain most all of the power. They give some of that power to their state. Their state then gives some of that power to the nation. The nation ensures free trade among the states, defends against any foreign enemies, and provides basic nation-keeping duties: border, customs, etc. (One might even imagine addressing pollution and other externalities issues as being in the basic nation-building category)

My answer is yes. The more we centralize powers that used to be local, the more we end up in this winner-take-all thing we have going on, where rules are made in a one-sized-fits all manner. That's bad for a multitude of reasons. As much as possible, distributed, self-optimizing systems out perform command-and-control systems. (But not always. When that paradigm doesn't work, the fallback should always be a federated, staggered and layered system)