leave it as is!!!!!!!!
i still havent seen a good enough reason to change it.

marketplace is fine as is, i wouldnt want to have to search state by state for
the part i am after.

lounge is fine as it's 90% offtopic jibberish anyway

events is fine if you structure thread titles as instructed ie:
"[MELB] calder park drags - sunday 28th, May 2006"

i think having state by state sections will do nothing but divide the community more and make it harder to navigate