Unfortunately, one thing stands between your prediction and reality: The California Republican Party.
Perhaps I'm being pessimistic, but watch for them to run "Red" Riordan against "Gray" Davis. Davis will then run as a conservative and win. Why? Because he'll be telling the truth about who's more liberal or more conservative. I'd say that the odds are even money that the CA-GOP will run with Riordan and to the left of Davis. They'll get blown out of the water; just as they'll deserve.
You must not be from California. The California GOP has little say in who our nominee is. The only "power" they may have is when they (meaning the highest ranking elected officials and party leaders) are strong enough personally to be able to prevent someone from running in the first place.
That hasn't happened here. And, because the voters in California are so removed from the political process, they'll listen to all the candidates and whoever has the best message, and the money to promote it, and can get the conservatives motivated and working the grassroots, will win.
We haven't had that in a long time. With Bill Simon I think we can. And I don't think that the Republican voters can stomach Riordan in the least. Especially when the realize he's to the left of Davis.
And the enormous Handout Class, both legal and illegal.