Final answer:
Dillon's Rule limits local government to powers expressly granted by state law, so it does not afford freedom or flexibility to local governments, which is false. Also, the Trustee system was autonomous and not advised by a royal governor, also false. Finally, the necessary and proper clause has expanded, rather than limited, national government power, which is false too.
Step-by-step explanation:
The question posed is whether Dillon's Rule allows local governments to have the freedom and flexibility to make their own decisions. Dillon's Rule actually does the opposite; it is false that Dillon's Rule provides such freedom and flexibility. According to Dillon's Rule, local governments only have powers that are expressly granted to them by state law, those necessarily or fairly implied in or incident to the powers expressly granted, and those essential to the declared objects and purposes of the corporation, not simply convenient, but indispensable.
Another part of the question addresses the Trustee system in the context of colonial governance. The statement that the Trustee system was advised by a royal governor who lived in Savannah is false. The Trustee system in the colony of Georgia initially operated independently under the charter from the British crown and was not overseen directly by a royal governor.
Lastly, regarding the necessary and proper clause in the context of the powers of the national government, it is false that this clause has had the effect of limiting the power of the national government. In fact, the necessary and proper clause, found in Article I, Section 8 of the U.S. Constitution, has often been interpreted to provide Congress with the power to pass laws that are deemed necessary and proper for carrying out its constitutional responsibilities, thereby expanding its powers rather than limiting them.