Let me see if I can be more clear.
To qualify as a drone driver, the Government of the United States gives me two choices. (1) I can get a part 107 license and fly under those rules or, (2) I can fly my drone under the rules of a Community Based Organization and disregard part 107. I can choose either set of rules that I want to. I can NOT however take the parts of 107 that I like and the parts of the CBO rules that I like. It is 100% one or the other.
The law is that I must abide by ALL the 107 rules, or ALL the AMA rules (sucks but it is the law since AMA is the only CBO we currently have). So, if you are not flying under all the CBO rules you are automatically flying subject to 107 enforcement.
To answer your question, no, I am not following all these rules no matter where I am. I am clearly in violation of the law. However, I don't want to be in violation of the law. I want the rules to change so that drone drivers like me can enjoy our hobby without having some old AMA modeler, or cop that hates drones, calling me out for violating some outdated law that was never intended to apply to my drone.
The other groups that you mention (cities, states, counties etc.) can make laws that are only valid within the boundaries of that city, state, county etc., but they are not CBO's recognized by the FAA, so not really part of this discussion. Right now, according to the FAA, the AMA is the only CBO whose rules they recognize (I hope this changes sooner rather than later). Yes you must comply 100% with all rules of the FAA or all rules of the AMA, your choice.