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Consider the possibility that he is bullsh***ing the Left on this one, leading them along a-purpose, knowing all the while that he's not going to sign a bill giving DLs to people whose presence in the state is not itself legal.

So, in your best case scenario, I should trust that he's lying?
Setting aside that bit of cognitive dissonance; lying to what end?
SB60 was going to be overturned by refernedum without any lying. There is no need for it. An overwhelming, bipartisan majority of Californians is opposed to CDLs for Illegals under any circumstances.
The lying, if it's lying, serves no good purpose, and once again concedes the terms of the debate to the Democrats, in that amidst his stated positions (are they all lies?), Schwarzenegger says he wants Illegals to be legalized, and to get CDLs and insurance.

If he is sincere, I STILL believe that his more pragmatic handlers will make him realize, "Even if you really want to do this, don't, because you'll be seen as breaking trust with the 70% of Californians who think it's lunacy. You'll blow your political capital without doing any real good."

If he is sincere, he is wildly out of touch. Yet in this fall back scenario, I'm supposed to trust unelected, unkown, and unaccountable pragmatists to save Arnold from himself?
Neither scenario is especially confidence-instilling.

I didn't say I liked what I was hearing. I said I wasn't as worried about it are you. And, for the record, BS-ing isn't lying. To my knowledge, his only public promise to Cedillo et al. is that he will "look at" and "consider." Plenty of wiggle room there.

This may not be Boy Scout stuff (if he is BS-ing), but it isn't lying, either -- and may be more conserving of political capital than a guileless, totally honest approach would. That isn't to say I personally wouldn't prefer the latter, McClintockian approach: "Sorry, but I am against DLs to illegal immigrants under any circumstances, no matter how many security and insurance provisions such a measure may bear. And if one somehow is passed overriding my veto, I assure you that I will take the matter to the people by referendum and overturn it -- although, if it comes to that, I will be seeking recalls of several legislators at the same time."