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"What am I missing?"

You're not missing anything. He's got his mindset all wrapped around that old axle that the only reason Reagan ever got elected was due to his celebrity status... Not because of his fabulous conservative ideas!!!

He then equates this mistakenly with Schwartzensmugger who ONLY has celebrity and nothing much else!!!

Then he gets all pist at McClintock for even bothering to follow the natural progression of political endeavor because he's too much of a policy wonk and not a beautiful smiley celebrity with star power that overwhelms everything... Even good sense amongst the voters of this star-struck State!!!

Join me in a dream of a California whose government isn't characterized by political hacks and cronies and relatives--an administration that doesn't make its decisions based on political expediency but on moral truth. Together, let us find men to match our mountains. We can have a government administered by men and women who are appointed on the basis of ability and dedication--not as a reward for political favors. If we must have a double standard of morality, then let it be one, which demands more of those in government, not less.
— Ronald Reagan, 1966

What I said which is true is that if Ronald Reagan was not famous before entering politics, he would never have had the opportunity to be a great politician.
Sure he was a great conservative thinker, but his charm and fame got him the opportunity to be Governor of California.

McClintock has no charm/likability and he is not very familiar to most in California, so to gain a Governorship would be near impossible.

Arnold was famous, and had himself several successful business ventures outside of film and as a businessman realized the problems a business had in operating out of CA.
He said he'd be trying to not move the old boxes around, but to blow them up.
The conservative block did not for the most part come out and vote, so he was left with nothing to fight the liberals with.
He did try to go after the unions and such, so it is not like he didn't try.

McClintock doesn't have the stuff for Governor at this time and I doubt he ever will be able to do it unless the Democrat running against him is revealed to be a child molester just before the election.