Most of what you wrote is true about California. IMHO, housing and high tax on everything are huge negative factors.
I have a friend in CA making about $200K a year (double income family). They are still unable to find a decent house in a reasonable location with good a school, and have been renting for the last few years.
If you want to live in a large and beautiful home, it's time to seriously think about moving. Most middle class districts outside of CA are very nice.