Interesting, but I doubt the average person would really identify themselves with the middle layer organization. I'm beginning to be very skeptical of exactly how 'unsuccessful' the US under the Articles of Confederation actually were. History tells us that things weren't working, but history tells us alot of lies which we eventually consider truths and accept out of hand.
I think the lasting problem with be what sort of central power will there be. Undoubtedly the likes of Hamilton, Clay and Lincoln would say that it is paramount that power be centralized in the Federal Government to the detriment of the states.
What may be possible is some system similiar to that of Austro-Hungary, where there is only a minimal cabinet at the top that directs foreign affairs, trade and war.
In one aspect the additional regional layer just as another bureacratic morass that people and companies will have to navigate.
Well, "history" has never told a single, unified story - there are almost as many versions of history as there are people telling it. Some are probably more truthful than others, but only rarely is a version of history totally truthful or a complete lie.
Having said that, I agree that there isn't necessarily any reason why the Articles of Confederation couldn't have worked with perhaps some amendments. On the other hand, if the Confederation government could not effectively adjudicate economic and territorial disputes between states, I could see different groups of states with common interests banding together into leagues to push their own interests inside or outside of the Confederation government. This wouldn't necessarily be an actual new layer of government - it could be more like a political coalition or political alliance. If this goes too far, however, it could cause the actual breakup of the United States.
I suspect that the first 10 or 20 years would be decisive for the United States if it remained under the Articles of Confederation. If the most serious conflicts between different states and political interests could be resolved or at least reduced to an acceptable level, the Confederation government would gain more respect and become an accepted institution. If this did not happen, the government could lose almost all of its authority.