Why not? Let us have several such States. It would be a blessing to all these regions where development activities do not reach. In fact, all these big states should be divided into manageable smaller ones.
The result would be very positive in the sense that the governance of the country would be more effective as well, which now seems to be going out of control. These Mayabatis, Jayalalithas, Lalus, and Chandrababus would have much of say neither in their neighbouring States nor at the Centre, as they have or had in one time or other until now, at the expense of those smaller States.
There has been a positive out-come out of the earlier division of the States of Uttar Pradesh, Bihar and Madhya Pradesh. The rapid developments of Uttaranchal, Jharkhand, and Chattisgarh are there for all to see.
There will be long-term impacts on regionalism and religious fronts as well, once we have many smaller states. The state boundaries will cull the negative impacts of these, to a great extent. Brightest example is the containment of the Gujrat Riot inside that state, though as logic could have it, the riots should have been else where as well. These type of activities can be effectively dealt with and actions could be rapid.