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I would ask the question, "What makes the most sense to the end user?"  The reason I would ask this question is because I have a strong feeling that this is the same question that search engines are asking and overall trying to achieve.

I suggest following Google, Bing, and Yahoo as an example, they have the same title for each page.  If I search "Christmas Decorations" in each of those engines, the title of the page is just "Christmas Decorations" no matter how deep I go. At the top of each page they let me know which page or which set of results I am looking at.

I'd be curious to how you are controlling that only users from those states see those pages?  Are you using IP address matching?

As far as generating "generic" content that is craw-able for Google and achieving this, I think the question you should be asking yourself is, "Is this content for the search engines, or my customers?"  If the answer is, "For my customers", keep pursuing what you are doing, but why not show it to everyone?  If it is targetted for people in California, then I may still be interested in it even though I live in Idaho.  I have a brother in California who may not come to your site, but I might and may tell him about it.

If the answer is, "For the search engines" then stop what you are doing and change your goals so that they line up with "For my customers".  Customers purchase, search engines don't.

I just read a discussion that was originally posted by Steve Ollington on May 22, 2011 where he states that many people are asking the wrong types of questions on this forum.  He said that he wonders if he will see a shift from people asking questions on "how to rank" to questions dealing with "how to work out the best KPIs" (Key Performance Indicators - yes I had to google it).

I was once told we learn more by asking questions about a topic than by just listening.  I've also been told that sometimes the right question to ask is, "What questions should I be asking?"  So here is my question, what types of questions should I be asking to be better at SEO?  Perhaps these are some of them:

1. Is it possible to be good at SEO when it is not a full-time job? It is very tempting to look for easy answers when you only have limited time.
2. What are considered KPI's?  Are they different for every industry?
3. How do you know what is junk information vs what is truly good SEO advice?  Is it just simply trial and error?  It seems to me that if people find truly good SEO information, they aren't going to be sharing it so easily.  It's the whole, "You get what you pay for".

Maybe some of you can tell me more of the questions I should be asking.