Seems reasonable to me. Let San Francisco and LA do their thing and then let the rest of California get on with real life. Not such a bad idea.
(From The National Review)
Lots of people have their favorite maps for new states. For decades, the natural dividing line ran due east from the coast, just north of Bakersfield; it emphasized the differences between northern and southern California. My favorite design was for three states: one centered on Los Angeles, one centered on San Francisco, and everyone else in a third state. More recently, in 2009, then GOP assemblyman Bill Maze proposed creating two states: a Coastal California state and an Inland California state. The big population centers of San Francisco and Los Angeles would be in the first, but the inland state would include some large coastal counties such as Orange (home of Disneyland) and San Diego.