How is it "clipping the wings of the federal government" if a federal agency decides itself to stop making rules about something? It can unfold it wings again at any time.
Doesn't really matters if it's self-inflicted. The result is the same: the fed have removed a regulation at the federal level. The state are now free to choose what they do. States who make the "wrong" choice will get get punished economically. Free market. Nothing bad about it.
Meanwhile, the people in those states suffer. How is that better for the people of this country?
Without getting too deep down the rabbit hole of representation and balance of power in many states, Federal regulation generally exists to protect people in States that refuse to make the "right" choice, as you put it. Removing Federal regulation isn't a net-good by default — in this case the regulation served a legitimate purpose to protect consumers and should have been left alone.
