Senator Kuehl has stated that she plans to re-introduce the single-payer bill that passed last year AND get it passed again. I don't think the lege has moved on at all; they realize Arnold's plan is bunk.
If the lege wanted to present Arnie with the Kuehl bill a second time, why are Núñez and Perata pushing their own bills? (Which, as I understand it, are fairly close to Arnie's plan - and absolutely not anything that could remotely be called single payer.)
My surmise was that they thought, Hey, we took our shot with Kuehl, and Arnie kicked it as expected. This time, let's get what we can, which ain't much, but is better than a poke in the eye with a sharp stick.
Now, it may be that you could argue that refusing to deal with Arnie is the way to go, because any deal in 07 will punt the issue for years to come.
Is that your argument?