Exactly. The 10th amendment removes the fed gov from this and puts it on the "States respectively, or to the people". This was done to protect us from the fed gov if it were to ever become opressive. 10th full text: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
The 2nd amendment explicitly does NOT give regulation of fire arms or militia to the fed gov. 2nd full text: "A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed." Thus the 10th takes effect. The 2nd explicitly specifies "the right of the People....". So, i agree with you that a local gov should be the organizing entity, but the People have the right to defend themselves without any government entity.