The guy clearly wants to turn Silicon Valley into a legal safe-haven for obnoxiously evil plans to conquer the Internet.
California definitely has issues, but splitting it up into little, tiny states isn't going to solve anything. On some level we have to cooperate with our neighbors, and their neighbors, up until we manage to cooperate with everyone in the country, and this plan is basically this guy saying Silicon Valley wants the rest of the state to just fuck off.