You are so right! The place is beautiful but...I lived there 12 years and ran into more blatant political corruption, police abuses and outright thuggish behavior than I ever have in the 'big city.' The residents include some of the meanest, most elitist, narrowest-minded people I've ever encountered. Suing neighbors seems to be the sport of choice unless someone can figure out a way to build right smack in front of someone else's ocean view. You get extra points for that. My 'friendly' neighbor poisoned my 30-year-old avocado tree because it interfered with his new home's view.
Meanwhile the grungy little town of Pismo proper boasts some of the worst dregs of society. Never get arrested there! Going to jail in that town with its gung-ho undertrained cops can be life-threatening! Some of the worst years of my life were spent in that nasty little place.
You've managed to succinctly catch the "essence" of the coastal California experience. I'm from Chicago and have noticed that is the sport. Kind of fun actually, it's not that they are any tougher than Chicago, just different ;-)