People would love to live in a state with Mediterranean climate mostly year-round regardless of subsidence. You can say it would reduce agricultural jobs if charging for unsustainable water use put down farms dependent on it and that would make California less attractive economically. But even assuming the entire hulk of California agriculture was destroyed, that’s in the low single digit percentage of the state’s economic activity.

It’s not just a matter of that the soil went down. The water was extracted from a matrix of soil and water, and the soil sinks because the matrix of soil and air no longer stands up to the weight above it and gets compacted down. Less voids in the soil means that when rain comes in, instead of seeping down and recharging aquifers it piles up on the surface in sheets that then race down to lower elevations in floods that sweep away whatever is in their path. And with enough extraction and lessened recharge eventually the wells stop working and force the issue. Everyone suffers from natural disasters for the benefit of a few who just so happened to get water rights from early settlement.