it's only odd if you think economic productivity is the sole determination of what makes a desirable place to live. regarding SF in particular, it's phenomenal what has been accomplished there, don't get me wrong. but this has to be weighed against the fact that a "starter home" costs $1mm, the rate of petty crime rivals that of the most dangerous cities in america, etc. it's not cognitive dissonance to acknowledge that, while great things have been accomplished, a lot of stupid mistakes have also been made.
and by the way, I don't think the ban on non-competes is usually what people are thinking of when they describe california as a mess.