No doubt the people created the states, but the forms through which the people created the states were those of the Federal Government, which thus, created the states, set the boundaries, and set the date for their admission to the Union, and guaranteed from then on a republican form of government.
No doubt that our government depends on the consent of the governed, but that consent is expressed through elections of various officials, such as the president, and the powers of those officials are limited, even if the people would consent to giving them more power, such powers would have to be granted by amendment, legislation, or by court case. If the people would like to remove powers from any official position, such removal would have to take place by amendment, by legislation, or by court case. Of course the person occupying a position could be removed by impeachment, or by expiration of his term.
I think you're missing the point. The federal government has no sovereignty of it's own - all the sovereign authority resides in the people and their respective States.
Federalist #81
It is inherent in the nature of sovereignty not to be amenable to the suit of an individual without its consent. This is the general sense, and the general practice of mankind; and the exemption, as one of the attributes of sovereignty, is now enjoyed by the government of every State in the Union