"We have this law that was voted in 40 years ago. I don't really think it applies anymore as we have better methods available to use through technological advances, but casting a vote to remove the law is an expensive, timely process. We should keep following this law."

Plenty of laws go unenforced because they no longer make sense to enforce. Enforcing the letter-of-the-law contrary to popular position is also one way to prohibit progress.

For example, you aren't allowed to remain at a bar in Alaska if you're drunk. I don't drink, but I think enforcing that kind of defeats the purpose of a bar? [0]

[0] http://www.legis.state.ak.us/basis/folioproxy.asp?url=http:/...

Only Switzerland somehow approximates a system where the voters decided that.

In any case, the State still has the decision - that's exactly what judges like this one are for. One court order and Uber can be shut down the next day.