Palin has always been for the roads and sewage. What turned Palin off was the new toys the local gov wanted to build. Like a new city hall etc. Palin believes that gov should stick to the fundementals of what it needs to do.
Exactly so, but you have to read between the lines of this propaganda piece to get that.
And you point out a new lie that is gaining traction on the Left: conservatives want no government at all, and this makes us hypocrites. Nothing could be further from the truth. Some government is necessary, as the Founders also declared. But, as Washington said, government "is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master," we should at every turn oppose any increase in its power. Palin believes the same way.