Eliminate the state and local government levels, replacing them with a level of regional governments.

These are true governments, in a way that the previous examples weren't. They have parliaments and multi-function bureaucracies. I've shown them as having constitutional protection, if they don't have that protection then we need an arrow from national to regional level to show they are creatures.

A possible concern is that by doing this we are really just replacing our six states with a larger number (typically thirty to fifty) of regions. The key issue here is the constitutional protection: there's no referee to force regional governments to cooperate, so they are free to compete with each other, have inconsistent regulations, etc..

We might also wonder whether regional governments will be close enough to the people to discharge the responsibilities currently handled by local governments.