I'd argue that it's not the scope of the powers that leads to inactivity but the lack of clear definition of what is a regional and what is a federal power.
I think that's more to the point - we need a clear outline of who has power over what, because at the moment - a regional legislature could be working on a bill and it could be overridden by a federal bill on the same subject. I personally feel that both bodies shouldn't be able to legislate on the same things.
I've referred to the process as "devolution" as the Atlasian Government would be transferring
exclusive power over certain things to the regional legislatures.