Since the Citizens of the State are the sovereigns, the fact that some lands were in the territorial possession of the federal government prior to statehood has no bearing on the discussion.

The fundamental Rights of the Common Law inure to We the People and are implemented on the  County level.  There are virtually no rights more fundamental to a free market Republic than that of private land ownership, so keeping these records local is the only sane choice.

I'm sure that a few intellectuals who are insulated itn their ivory towers will descend and tell the Common Man what is best for him, but history and freedom already tell us to not turn things over to Big Brother.