The only reason I have the smallest bit of hope is that this is a state case in California and not a federal one.

No, it's a federal court case. The original claim that Epic won against Apple was based on California state law, but it was decided in a federal US District Court (N.D. Cal) because there were also claims under federal law (the Sherman Antitrust Act) and because Epic and Apple are headquartered in different states.

California is not going to punish Apple Execs lmao.

They didn't give a reason.