I think you all are taking my suggestion far more seriously than it was intended.
However, you're also assuming that the Federal government would vanish overnight, when what I said was "devolve". Meaning a more orderly transition of power, something akin to what happened with USSR->CIS->Russia and a bunch of other new countries.
I would see it as a transition to a weak confederation of all 50 states, which would then transition to regional supragovernments that the states would form and join of their own design. You'd probably see CA, WA and OR form one; NY and the New England states form one, the upper Midwest form one, the South form one (and yes, it would probably be some half-assed attempt to reform the Confederacy), etc.
I've come to believe that democracy has both a minimum and maximum optimal size. Three people doesn't make for a good democracy. Neither does three billion. Honestly, I think even America's ~318 million has surpassed the optimal maximum. If we continue to grow, we're either going to move towards a more authoritarian central government like China, or a hopelessly broken decentralized democracy like India. If I had to hazard a guess, I'd say the optimal maximum is 200-250 million, though cultural factors will change that. A heterogenous population is going to have a lower effective max than a homogenous one.
Breaking the US up into smaller, more homogenous chunks potentially means better, more responsive governance for everyone. Not that I expect to see it in my lifetime (unless it's done the quick and ugly way, which I'd rather not see) but I think long-term the US is unsustainable in its current form.