I've never lived in California, so I may be way off, but it seems like the decline of a once defiant state is a great metaphor for the baby boomers who made it the center of the counter culture. They started off young and angry, fighting against injustice, and as they got older, the turned into the system they were fighting. They became The Man, scared of things they didn't understand and absolutely terrified of not being in control. It's like watching Citizen Kane if Charles Foster Kane was a state.
The quote "the most radical revolutionary will become a conservative the day after the revolution," seems applicable here. Are we all doomed to repeat this fate, to fight the system, accomplish our goals, then become the system as we try to hold on to what we've made?