I think the basis of what the judge is saying is just that the people in the non-state territories do not have representation in Congress. Their U.S. citizenship gives them legal freedom (they are protected by the law), but not political freedom (they have no say in writing the law).
I do think that the closer government is to the people, the better. Our government feels a lot farther away than King George III lately. However, if I had to be a Californian first and an American second, I would have to move to another state.
You are right about what the judges says and the context in which he says it.
However, take it farther and try to imagine (it does take a bit of imagination) we have all reverted back to the very same type of citizenship without political rights as those people long ago in non-state territories. How this happened, we NEVER assert state Citizenship on any forms anywhere, our children never consider offering allegiance (a sovereignty tradition) to the state and is never asked to (it never occurs to adults, except for me), but over and over again people are programmed to stand for the national anthem, to pledge to the federal flag. We have become federal citizens by attrition, one big territory of federal citizens with SCINO (state Citizenship in name only, or mere residence). Conversely, the several states with their associated political rights may still exist but you have to imagine them virtually empty and filled with alien resident pseudocitizens of the jurisdiction of the federal government, foreigners effectively. Political bodies with no members. I don't know if the several States ceased to exist in law, or if they are still there and can be joined by legal action. I don't know what implication that would have for our interaction with the federal entity that might say if you want to be state Citizens, then you don't need any government jobs, social security and abrogate its contracts with state Citizens. It could make life very difficult for states where the Citizens start to "come home." At such a time we would find out what a "plantation" the federal government is, and how much it dislikes people leaving. If islam hates apostates, just wait until the federal government starts losing federal citizens to state Citizenship.
Imagine all of us reverting back over generations long ago to status of federal citizens in the territories, it would explain a lot, the Katrina confiscation, the federal reserve, the IRS, the apparent social democracy we live in, the lack of response to the will of the people, confiscation of property. Make your own list for homework, its fun and educational to list the long train of odius abuses and finally have an answer to the mystery, that we are all territorial citizens so of course they do these things.