Feds bullying the states

I'd appreciate comment/review/feedback on my view of the bullying of the states by the feds. This is couched as a letter to Arnold Schwarzenegger.

    http://www.mikedilger.org/federal-state-balance.txt

What I wonder most is... where is the real balance of power? How strong are the states militarily? Is it altogether too late for the states to try to enact a coup? Would war break out?

-Mike