First of all, that was at the very beginning of our republic, when the states still had a backbone and when their legislatures were full of patriots, not career politicians (just like the federal government).
Secondly, I'm not saying it's never been used before or that it isn't useful. It's still a great tool, and every bit helps. In the end, it may be what we will use to restore the republic. However, I AM saying that it obviously wasn't enough to prevent a situation like what we have today from happening. The problem is that the republic needs to be restored in the first place. Once we do succeed in bringing it back, it will only be after years of hard work and sweat and tears (and hopefully not blood, but that may be as well). After time, people will once again become apathetic and spineless, just as they have in the centuries between the Alien and Sedition Acts and now. By recognizing this, we can fix the small mistakes our Founders and Framers made which allowed our situation today to unfold. The only way to prevent this from ever happening again is to implement an even stronger and more direct procedural check by the people...and while you're free to disagree, I personally believe that law invalidation by jury is one of the greatest and strongest checks we can add to make our system of government more foolproof.