California did pass the tax hike - on a voter initiative. It was a proposition, not the democrat big wigs actually doing anything. Do you think theyll raise a finger to repeal prop 13? ha.
Marijuana legalization? Seriously? Thats your big Democrat trump card? Yeah, lets forget about torture, Guantanamo, domestic spying, out of control military, stagnant wages, the slowest recovery ever because WOO WEEED.
First, the California legislature would've easily passed a tax hike, but because of the batshit insane initiative process, it was politically smarter to bring it to the people instead of passing it in the legislature where they could be blowback.
In addition, something like repealing Prop 13 not only isn't popular, it's also a big enough deal to cause backlash. The crazies are smart. They either go and do things that are actually politically popular, if stupidly right wing (cuts in spending because household budgets are exactly the same as a state budget) or they attack things which don't effect enough people (ie. abortion laws, unemployment, etc.).
In addition, a lot of these crazy laws are being passed where the GOP has the advantage due to the fact there's only 27 people in those states (South Dakota, here's looking at you) or they're heavily gerrymandered (Texas - yes the GOP would have a majority, but not a near 2/3 majority, North Carolina, Florida, etc.). Where the Democrat's have power either has a stronger Republican party (ie. Washington, Colorado, New York, etc.) due to the fact it's almost impossible to have a supermajority in a state with lots and lots of people. California's an outlier, but only because the California GOP is controlled by the part of California that's like Alabama.
However horrible Obama is on those issues (which again, don't come up on the state level), he's still in the top 25% of people who could possibly be President at the moment. I'm voting for people to best run the Empire, not destroy, because again, wiretapping and drones are popular.
Finally, state governments can't do much to help the economy because they're restricted by balanced budget agreements in 49 of the 50 states. They can't deficit spend, so you have to look to the federal government to do the heavy lifting on that end.
As far as the "OMG Democrat's have controlled the inner cities and they're crap," you can't force people to place businesses there. When there's no tax base, there's not much those mayors can do except triage and on the state level, beyond funding education (which again, states like New Jersey, Maryland, and Connecticut fund well - Scranton's in Pennsylvania - another state that is GOP run via gerrymandering). You want to know how to fix the inner cities? Rebooting the Great Society to LBJ levels, instead of the cuts that immediately came when Nixon came into office.