The negative does not apply to the propositions but to the ‘mathematical’ relationship between two probabilities.
A could no more X than Y may be paraphrased as
The probability PX of A doing X is not greater than the probability PY of A doing Y.
Thus a sentence of this sort does not explicitly state that either proposition X or proposition Y is impossible. Rather, it describes X in terms of a Y which is on its face impossible.
In your example X=she could break her marital bangles (‘break’, for short), and Y=she could drive a stake through her husband's heart (‘stake’, for short). The sentence states that the probability Pbreak of her breaking her marital bangles is not greater than the probability Pstake of her driving a stake through her husband's heart:
Pbreak ≤ Pstake
The author expects you to understand Pstake to be utterly impossible (P=0) and to infer from the stated relationship that Pbreak is also impossible (P≯0, ∴ P≤0).
It's not the sentence but the reader who judges the ‘truth’ (actually the probability) of each proposition.
When you want to express that one thing leads to another, you use the ..., the ... with two comparatives. The comparative here is more, so you use
The more money people have, the more they want.
If you use the followed by a superlative, it indicates the maximum that can be reached, as in
The best they could hope for, was to save their lives.
Much in your example is the indicative, and "the much" is ungrammatical, so no, you cannot use that (as far as I know) in any correct way.
"As much more" is ungrammatical, you are confusing then "as + indicative" as in:
As much money as they have, they always want more.
With the the, the construction that you are trying to form.
"Much more" is a strange construction in itself; you use "much" to indicate that we are not talking about simply more of something, but more than that: it is "a lot more".
This simply does not work in the construction with the/the.
Best Answer
"The more the gauge" does not sound natural to my (American) ear.
In (American) English, wire gauges are specified using numbers. For small wires, larger numbers mean thinner wires. Thus, it is confusing to say "the larger the gauge" -- do you mean "the larger the gauge number of the wire", or "the larger the wire diameter"? "The bigger the gauge" has the same problem.
As Joe Dark suggests, "The heavier the gauge" is correct and natural. "The thicker the gauge" is also correct, but is not as natural.