Except people are not perfectly mobile and can't simply relocate across a continent. Should California be free to say, deny all brown eyed people access to public schooling? Or to run its economy into the ground and dissolve as a state? What about selling itself to a foreign power?
People are free to relocate where they want. They are not free from the consequences, particularly economic ones. As someone who is living in an fairly terrible state because there happens to be some high paying jobs in my industry I am unfortunately very aware of these kinds of trade-offs.
Don't straw-man me, I'm not saying we should dissolve the federal government. I'm saying states need to be less under its thumb and with that comes some responsibility for the consequences of mismanagement. Some of those consequences compound (screw up your state enough and all the people who can move will, taking their tax revenue with them) but that risk seems like a pretty low price to pay for more government happening on a level that is easier for the average Joe to influence.
If they can somehow reconcile your eye color restrictions with existing state law, the US constitution, etc then sure, why not.
