Not all blue coast states are dysfunctional. Washington state where I live is rather blue but not run by crazies. My impression is that Massachusetts, while being deep blue, is fairly well run, e.g. it has a good K-12 education system.
Liberal versus conservative is less important than competent versus incompetent. California is run by Democratic idiots. The fact that they are Democrats is far less germane than the fact that they are idiots.