Trying to carve into even more pieces, as you propose, would only deepen the problem. Corporations, for instance, would love to be regulated only by the states, without federal involvement. Hell, that's how they first legalized corporate mergers back in the 1880s. New Jersey let a business lawyer rewrite its statutes, and the rest of the states rushed to follow, in a "race to the bottom."
I agree with you about the two-party duopoly, but the answer to that is also democratic organizing and federal reform, not states' rights.
I don't mean to harsh, but you might be somebody who could use some self-criticism before you start dumping Bubbas into the sea. You don't think the third world is exploited by the first. You think Saddam is being lynched. You think blacks are responsible for their own plight in the U.S.
Yes, Americans are ignorant and unfriendly to foreigners, but they're also unfriendly to pretty much everybody outside their own little circles, foreign or not. Take a trip to the mall and watch the social bubble-worlds pass each other by like ships in the night.
This is simply what happens to people when first-world corporate capitalism runs its course without any democratic restraint. It's not a national characteristic. It's a by-product of the unprecedented success of our ruling class. "Mobile privatization" was Raymond Williams' apt phrase for it...