It's been a long time since I worked out west (Wyoming), but I clearly remember the contempt for the federal government that was widespread and among some people, very near hatred.

Nowadays many federal agencies no longer used federal vehicles in many areas. Fed employees of some agencies (NPS, FWS in particular) don't wear their uniforms in some areas.

Clearly Bundy is breaking the law.

Equally clearly, a lot of his neighbors see his actions as a cause célèbre and a fine opportunity to make a point about the relationship between land users and the landowner.

Are they right?

If the fed shoots a bunch of civilians over grazing rights then the feds will have proven the ranchers argument with the lives of the ranchers.