kiwigeo said in part: "5. Without sitting down and thinking really hard I cant think of many good reasons to have State and local governments. It's an old institution that might have worked in the past but has long outlived it's usefulness."
As an American, I'll wade in with why we believe that is a bad idea. Centralization of governmental powers leads to abuse of those powers. Ours is a confusing quilt of ideas, laws and customs. It works and we like it this way. Currently there are efforts to introduce more centralization but there is resistance from the people and the effort is being balanced, to some degree, by our two party system of government.
Not trying to offend by saying you are wrong or ours is better. I'm saying we like what we have. It is confusing and that is part of the control.