According to the professor that the author, Allysia Finley, quotes, "Part of California's dysfunction, he says, stems from state and local government restrictions on development. These policies have artificially limited housing supply and put a premium on real estate in coastal regions."
Yes, California is limiting growth to protect its environment. In fact, the article concedes "that such places (example Indy) will have a hard time eclipsing California or Texas because they're not as well endowed by nature." So, do we limit growth to protect our environment? Yes.
Personally, I have no issue with folks that want to move to states with less taxes, like Nevada, Florida, etc. Less traffic, better air quality and a probable reduction in the amount of angry people that don't like being here.