I personally don't put much emphasis on the distinction between use of force by the feds vs. use of force by the states or local governments. It seems to me either we are free or we are not. The manner by which we are not free (feds vs. local authority) is not very critical.
It is a pretty important distinction. You might consider rethinking your approach. Government is a social cost, anything that needs governing costs therefore...
Start with the maxim: "That governs best which governs least"
I'm not saying it's ultimately not a distinction worth making, I'm just saying that when your freedom is being infringed, it matters less who is doing it than the fact that it is happening. I guess I'm taking issue with the reasoning that because a local government is restricting my freedom, I should be more OK with it than if it was the federal government. That doesn't make a great deal of sense to me. I accept the idea that states should be allowed to set their own laws. That doesn't make states restricting my freedom more palatable.
Under the maxim you quoted, every regulation would make the government less good, so it would stand to reason that the best governments allow the most freedom through the least number of regulations. So when a regulation is passed about who you can give sandwiches to, it stands to reason that it's a pretty unnecessary restriction of freedom. (At least judged solely by this maxim. I would tend to agree, just for different reasons.)