A CONFEDERATION unites independent parties for joint action, such as defense against a common enemy; in a FEDERATION, certain powers are ceded by the parties to a central government.
I don't understand how a confederation could be decentralized. Like the Confederate States, they came together with an Army. How could the Army function if it was decentralized? Federalism limits the power of the central government.
The State governments possess inherent advantages, which will ever
give them an influence and ascendancy over the National Government,
and will for ever preclude the possibility of federal
encroachments. That their liberties, indeed, can be subverted by
the federal head, is repugnant to every rule of political
calculation.
-- Alexander Hamilton
As a country we have drifted away from the intent of the founders, to our detriment. Those guys knew what they were doing. James Madison spent four years reading books on world governments before he helped write the Constitution.
Here Jefferson states clearly how WE are to interpret Constitution.
"The Constitution on which our Union rests, shall be administered by
me [as President] according to the safe and honest meaning
contemplated by the plain understanding of the people of the United
States at the time of its adoption -- a meaning to be found in the explanations of those who advocated, not those who opposed it, and who opposed it merely lest the construction should be applied which they denounced as possible."
-- Thomas Jefferson