As much as we complain, there are still phenomenal reasons to live in California. Look at our recent Turkey Day run. 30+ Porsche hot rods zipping around the Malibu canyons in
perfect weather. If you're a gearhead, this place rocks. That's got to be worth a lot of points on a car forum like this.
The culture is also impressive (though admittedly something you can find in most major cities around the country).
But as you've pointed out, there's a very high cost of living that comes with it. Taxation seems to be double what it is in other states. And we live in a world where government only can get bigger, not smaller. If you're employed, the money comes from YOU. After all, L.A. Times had a statistic this past year that 1 in 5 people in L.A. County are on some form of government assistance. I remember listening to a pitch from a wealth management guy while in residency. He admitted that he no longer takes any new clients from California, due to the near impossibility of his retirement savings protocols working in this place. With a state as diverse as this one, there's got to be a place you can call home somewhere.
edit: Check out this thread:
California dreamin'