1. Completely distancing from the national party is impossible. Besides, California Republicans have moved further right just like the national party and are quite extreme.
2. There are plenty of local offices controlled by Republicans, but extremism has been a problem there too. Some local Republican office holders have either switched to Independent or Democratic and some that have not switched just don't engage in local Republican circles. Local parties have been taken over by extremists and have few resources.
3. I'm not sure Faulconer would waste time running to not win an office as opposed to just retiring or taking a private sector job or state level appointment.
4. As conservative as the remaining Republicans are in the state there isn't going to be much innovation. They like doing things as they were done in the 60s, 70s and 80s.
5. The best chance the GOP has at a comeback in statewide office is if Democrats have too many candidates running and get locked out of the top two.
Things can always change if you come up with a plan, the national GOP in 1936 were in worse shape(see below) but eventually came back though it took 16 years. Similarly, the CA GOP should come up with a 20 year plan
House Seats for National GOP after 1936: 88/435 = 20.23%
House Seats for CA GOP currently : 18/80 = 22.5%
Senate Seats for National GOP after 1936: 17/96 = 17.71%
Senate Seats for CA GOP currently: 11/40: 27.5%
National Popular vote for GOP in 1936 Presidential Election : 36.5%
Statewise Popular vote for GOP in 2018 CA Governor Election: 38.1%