Absolutely vile, horrible phrase. Reactionary to the extreme, in pretty much every context it's ever been used.
States'-rights opposition to the Sedition Act and the Fugitive Slave Act are examples to the contrary.
Although this really hasn't been the case since the Civil War, since you're making this argument are you familiar with Henry Adams's excellent (and entirely accurate) quote on the subject?
along with this, the Confederate Constitution explicitly guaranteed slavery in every state, but did nothing to allow for secession or even nullification.