The weather is a huge plus, and I anticipate the city will handle global warming a little better than other regions. The county has made a lot of good decisions with water management too, from keeping the reservoirs full to supplying almost 10% of the water supply from a desal plant.
I disagree that the coastline is the only "nice" place to get a house, the ocean is pretty accessible from most parts of the city due to the highway designs.
Of course, there's issues with homelessness, retail theft, poor public transit, expensive housing. But it all seems a little more tame to me than the same issues in LA/SF/Seattle.