I can vouch for the fact that States and Regionals have big impacts.
In CO, the Brander boys lost only once at each of the 3 States/Regionals they played at. My kid lost twice at each of the same events, finishing ahead of them at one event and right below them at the other two, virtually idential, finish-wise. Yet, they are ranked much higher.
The ranking system works as designed. Losing in the playoffs is the problem. If you make the playoffs and don't win out, you don't get rewarded. Only the champ get the big boost.
That's my point here. You must separate the swiss rounds from the playoffs in order to do a decent comparison.
It would be interesting to put all the records in a spreadsheet and compare, separating the wins/loses according to swiss/playoffs. I really think it's the playoffs that excel certain players (the champs) and either hurts or adds little value to all others.
That's the difference. I think those above you won major events, possible going undefeated, which really boosted them to the top, like the CO Brander boys. If they performed average at the BRs and Cities, yet excelled at the States/Regionals, they SHOULD be ranked high.
Anyway, I don't doubt you feel strongly that CA is competitive. The current ranking system doesn't like highly competitive ( 4 or more top players ) in one region. In the current ranking system, there can really only be about 3 or less top players in each region; otherwise, the competitition prevents a few from rising to the top. That's the nature of the beast.