There is another option. We are already seeing the beginnings of it. Blue cities telling the Feds screw off when it comes to immigration. Red county Sheriffs telling the Feds to screw off when it comes to guns. What is the Fed gonna do when everybody tells them to screw off for everything? Let the Federal gummint just die back to what it was 200 years ago. A very small part of civic life. The county and state governments were where all the power and money were. If blue cities want to destroy themselves with their own money who cares? Let them.
If what you’re saying is true, I’d be all for it. But I’m skeptical about the reality of people giving the Feds a middle-finger without consequences. The political Left seems to get less friction from the judiciary, so their policies seem to get enforced by the Feds more easily. It seems to be policies that conservatives care about that never seem to attain “escape velocity”. The trend of U.S. history since the Civil War has been an ever increasingly powerful Federal gov’t. I’m not confident at all that the trend is reversing.