I think of it this way: Canada is one part EU and one part UN.
EU - We use a common currency. Some pseudo-council (our federal government) lays out what they feel are important policies on law, immigration and taxation and not all provinces agree (too bad for you, Mr Province but here's your carbon tax so we can feel good on the world stage).
UN - As a group of "countries", completely dysfunctional and useless. We fight among ourselves constantly, none of us particularly liking all the others, but no matter what individual provinces decide as a group - here comes one of the ones with a permanent "veto" (Ontario or Kwebek) to impose their views on the rest.
Any country this large is artificial. Look at the US - the United STATES of America. Ask the Maritime provinces why they don't just drop their individual provincial names and go with "Maritimes". Canada as an entity is about as unreal as you can get.
As for whether or not "many of the current provinces would be better off"........ Alberta separatist, remember?