If this were the case, Switzerland should be tremendously bad off. They have a ton of bureaucracy and are even more federalist than the U.S.

First of all, their point doesn't depend on Switzerland being in bad shape or not. They're not saying a country's situation solely depends on this, but that it's a factor. There are lots of other factors at play in Switzerland and most any other country.

Second, there usually is another layer in most of the US (and Canada, for that matter) which doesn't exist in Switzerland: the county. I think that's more likely to cause inefficiencies than federalism alone.

Also, I'm not actually sure Switzerland has more bureaucracy. It mostly seems comparable in my experience having lived in both countries. Are there any metrics on this?

Metrics? I thought we were all reasoning in sweeping generalizations here.

The Canadian tiers of government are very similar to the US. The one difference (AFAIK) is there is no "county" government or equivalent.

Anyways, this is actually the first time I've ever heard someone claim that Canada has less bureaucracy than the United States.