Brilliantly summarized.
Urbanites have a great deal of legitimate concern about the gov't regulation of behavior. With high population density comes high probability of running into immoral/criminal/deviant/problematic people - so much so that there naturally arises a great many nit-picking laws defining punishable behavior. Jaywalking in Manhattan during rush hour can indeed cause great havoc interfering with many people and costing $$$ ... but from where I type this the concept of jaywalking is preposterous.
To advance the cause of freedom, we need to better understand the needs of sardine-packed urbanites, address their needs - and convince them that the rest of us indeed need to be left the he11 alone.
Precisely. We need nothing less than to reorganize the US federal system so that areas with lower population densities are guaranteed true freedom, while high density urban areas are given the sovereignty needed to deal with their unique challenges.
I think states may be passe in a 21st century federal system.