Slippery slope, my eye, we're almost at the bottom of the sliding board. States' rights, fugghedaboudit. Except, of course, for the "compelling interest" of "diversity." Aaargh.
The legal reasoning, and I use that term liberally, is bizarre.
That's a "compelling state interest", where "state" does not necessarily mean one of the several States, but rather "Government". BTW, States have no rights, only powers.