While they were definitely disappointing, let's also not make too big a deal of the Democratic defeats last night: Republicans were always going to do well, and two successive Democratic "wave" elections meant there were a lot of Democratic seats that really had no business being Democratic. Couple that with a typical midterm slump, ridiculously high unemployment and not much to excite the Democratic base, and it's no surprise what happened.
Three of the last three elections have now been "wave" elections, and at some point that term has to stop meaning something. It's pretty clear that at this point, Congressional elections have been highly nationalized - if Democrats are doing well, Dems will win a ton of seats without regard for much of what's happening in those individual districts. That might be a sign of something, or it might just be noise.
It's also sad to see Prop 19 go down, and particularly because it doesn't look like it really brought a high level of young voters to the polls, which had been my hope. But 2012 will be a very different election, with Obama back on the ballot and hopefully a reinstatement of gay marriage as well, so the electorate voting in California in 2012 will be vastly more predisposed to legalize marijuana than this one. 46% is a great place to build from, and considering this was our first bite at the full-legalization apple in decades, and considering there was basically no money behind this proposition until the very end, I'd say we're in pretty good shape.