As originally constructed, the relationship between the states and the central government was indeed as Madison describes here, but intervening events (such as the 17th Amendment) have completely flipped the relationship. The states now submit obsequiously to the central government.
Thus, each of the principal branches of the federal government will owe its existence more or less to the favor of the State governments, and must consequently feel a dependence, which is much more likely to beget a disposition too obsequious than too overbearing towards them.
-- James Madison
It's worth noting that Hamilton was similarly optimistic.
(Quote credit: The Federalist's "Founders Quote Daily")
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