Any action a person makes to expand Wikimedia in any direction is a welcome action in my book.
So I would encourage anyone wanting to create state chapters to do so, even county ones, or city ones for that matter.

I wish I lived close enough to go to the San Fran meetups but I don't. I don't have the fervent desire to be the pusher for Santa Cruz meetups so I just wait for someone else to come by and do it.

However another thing that actual chapters can do, is to create additional title slots which then propel people to commit more time, energy and donations into the entire project. That is, a title gives a person who may be more marginal, a certain sense of integration into the project, which then propels them (sometimes) into a greater effort for said project. So there's that psychological reason for having more chapters, groups, lists, what-have-you.

Will Johnson