One of the interesting side effects of this is that if the federal government funds the states, the fed will be able to force the states to adopt uniform standards for homosexual marriages, gun control, welfare, affirmative action and so forth. Most excellent!

Then, thinking further, why have states at all in that case? Why not just one large federal government, with, say, regional governers? We can get rid of the Senate and the House, directly electing a President from the popular vote, and let him (or her) appoint the rest of the government. This would ensure that the mandate of the president wasn't compromised, and give us fast track ability to pass legislation, without all that pointless debate in the Senate. Everything would be consistent, across the country - everyone would be treated the same, no one would have extra power or influence over the government (since it is just one, super-powerful individual in control).

Ruthlessly efficient, unwavering in authority, directly elected by the populace. Now that's a government worth dying over.