The California Supreme Court has upheld the validity of the Prop. 8 ban on gay marriage. However, it denied that it applied retroactively, and ruled that it did not disturb the prior state of California law that civil unions had to be equal to marriage in every respect (in accordance with a general "strict scrutiny" approach to sexual orientation discrimination).
Calvin Massey analyzes the decision and says that, in all practical effect, it is actually a win for the gay rights crowd. Even so, I say, put that sucker on the ballot every year if we have to: the symbolism matters, and California shouldn't fall behind Iowa on this.