The decision, as with most controversies, is solved through federalism. If a state wants to re-create Sodom and Gomorrah, why not? God allows free will and people can choose for themselves. As immoral people concentrate, they will inevitably self destruct. Meanwhile, moral people can set up their own societies. prosper and promote liberty and virtue.
I read your post as “is solved through feudalism”! I wonder if that’s the answer...