How is it "clipping the wings of the federal government" if a federal agency decides itself to stop making rules about something? It can unfold it wings again at any time.
Without getting too deep down the rabbit hole of representation and balance of power in many states, Federal regulation generally exists to protect people in States that refuse to make the "right" choice, as you put it. Removing Federal regulation isn't a net-good by default — in this case the regulation served a legitimate purpose to protect consumers and should have been left alone.