We have district representatives in our states. Mine lives in my town and used to run a restaurant.
I believe in, and support the Union of our Several States, the districts and counties that lie therein. The current system of local to state to federal is the perfect form of checks and balancees any government of this millennia. I couldn’t support a union of city states.
A great example of the destabalization that such a concept would bring is the Jacksonian Era State Banks of the 1830s and '40s. Which allowed foreign influence, and mismanagement of speculative loans.