Ofcourse California has the worst form of democracy: direct democracy. I viewed a (Dutch) program about it once and the situation is: anyone with enough votes/signs can make a proposal for a law, for anything. For instance, that Spanish people may not get a driver's license or such things. Direct democracy is, apart from good old Athens, the worst system in the world.
As Dutchie I live in a consitutional monarchy myself, and that suits fine. The monarch has virtually no power though and is namely head of state. The ministers are responsible for the actions of the royal family (prince Willem-Alexander needed consent of the government to marry his wife, for instance). The government, the cabinet and the 'Second Chamber' (let's say House of Commons) have the real power, based on a parliamentary democracy: people vote for members of political parties. This system works well, as a majority of seats is needed to form a government. It also leads to the famed 'poldermodel', in which everyone gets a bit and we talk long enough for everyone to be satisfied. This way the people who have the expertise also rule. It has been chaotic ofcourse, the last past years, with Pim Fortuyn, the Animal Party, the rise of the Maoist Social Party and paradoxally the Wilders movement. Many people talked of 'closing the gap between The Hague and the civilians' and 'back door politics'. This has led to politicians trying to be 'closer to the people' and more of such nonsense.
This is one of the reasons I would be for a monarchy with more power. The monarch serves the interests of the state and will be able to work on a long-term basis. Ofcourse I would be for a chosen Monarchy, like in the Holy Roman Empire, where an Emperor was chosen from the seven Chancellors. Such a system would much more guarantee capable rulers.