So, technically, from that argument, a state legislature could pass a law that could bar people from establishing or practising a religion, bar people from making any comment that criticises the state government, and bar people from assembling, as long as the state legislature, and not Congress, has passed that law?
Technically, yes.
If that is ‘wrong’ then it should not be reinterpeted to mean what you wish it to mean, but the Constitution amended.