It would match up quite well with a party platform based on decentralization of power. Libertarian at the federal level, Republican for large states, Democrat for small states and big cities / metro areas, and liberal for small cities or towns.

This would allow for a lot of social services, but keep them more localized, so they can serve the population better and be held more accountable.

And it would avoid a lot of the problems with big government at the federal level.