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I grew up in the valley from birth until I left for college in 2009. A couple of things that I remember looking back at that time:

1. The 2009 housing bust hit HARD. Like, really hard. Housing prices skyrocketed in the couple years before and then in what seemed like overnight prices tanked and everyone lost their jobs. I recall hearing about cities like Stockton pushing a 25%+ unemployment rate. There were already crime and drug problems in cities like Stockton, Modesto, and Fresno, and that made everything worse.

2. There's very little to do, and you have to drive a long ways to do it. Outside of Sacramento and perhaps a couple of pockets elsewhere if I'm being generous, there's nowhere in the valley where you can, say, walk around and enjoy a day in the city and do things. I remember that parts of downtown Modesto and Fresno, at least back in ~2008, were literally shut down after dusk because of crime. Even then those fairly large cities are built like massive suburbs.

3. Water. I think this is the big one. The valley is only agricultural because of a large canal network. And for a long time (not sure how it is now), farmers got incredible water subsidies, partially rationed, which they were not allowed to sell. When I was growing up, one of the most common ways of irrigation I'd see was literally flooding orchards because farmers had so much water that if they didn't use, they lost. So they'd use it on the least efficient method of irrigation possible. I think that's changed a bit in the last decade, but only in response to very severe drought. I believe to some extent some farmers are now being subsidized not to grow crops at all to save on water. When that's the backbone of your economy you're in trouble. (Growing up I heard that I lived in the "breadbasket of America" frequently. I wonder what they're telling kids now.)

Also, your categorization of the region as being a strategic location by which you can escape is spot on. People would talk about how great it is that you can reach SF, Monterey, Yosemite, or Tahoe for a day trip quite frequently.

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