It would be unreasonable to expect that business influence would simply go away. In some states, that influence would probably increase, but in other it would decrease. The question thus is if the progressive gains in some states are worth the losses in other. My answer to that question is "yes." That gives the people a chance to vote with their feet, which under the current arrangement is rather difficult.
Stated differently, I have no doubt that a "state rights" movement would produce some crypto-fascist states rolling back the clock on almost everything. However, it would also produce some progressive states implementing new reforms that are currently out of the questions, such as national health care, decent labor legislation, and good public services. That would give an opportunity for those who care for such things to take advantage of them - a situation that currently is available to practically noone in this country.
Wojtek