Centralization of government power is generally a very bad idea.
But this does not mean that state governments and local governments do a good job.
We'll start with one of America's most poorly governed cities. Yes, we're talking about Chicago.
The city can't be bothered to stop real crime (indeed, it encourages and enables criminals by disarming law-abiding citizens), but it will nail small business owners with heavy fines for things that shouldn't even be illegal.