LA had & has a standing government & because of it they maintain full jurisdiction over any and all federal action within their territory. It wasn't just in the name of "bipartisanship". It was & is the law of the land. I see no power given to the federal government to override a state's standing government in your link, though I'll admit, I only skimmed it. Please direct me to the page where you see otherwise.
The only alternative, I think, might have been to go to the 5th DCA for an emergency order to allow the feds to interceed.
I really wish we had a tape recording of blanco's telephone conversations with the feds. They would be "special."
Except when the Governor declares a state of emergency, and specifically asks for the Feds to take over. Unfortunately for the LA governor, there is a paper trail. On Aug. 27th, she specifically did just:
http://www.gov.state.la.us/Press_Release_detail.asp?id=976
And Bush in turned authorized DHS and FEMA to take over:
http://www.whitehouse.gov/news/releases/2005/08/20050827-1.html
At this point, the LA governor had jurisdiction only over state police and LA NG. Apparently there was some flap over whether she would let the Feds take over the LA NG (which I didn't quite understand), but that had no effect on all other NG units, Army, Navy, Marine, etc. She had no authority to halt any of their activities, and if she attempted to do so, she is in big trouble and should be prosecuted.