The LA Times offers this report showing that the term limits/redistricting commission deal is not yet dead. Notable quote for the governor on why he now favors a citizen commission:

And Schwarzenegger said he no longer favors a system in which retired judges would draw political maps. In last year’s special election campaign, opponents — largely Democrats– lampooned that idea, airing TV spots that featured robed men hovering over a map that resembled a jigsaw puzzle.
“People feel in many ways if they’re more in charge of things and empowered, then that is better,” the governor said.
“This time, we’re trying to do it in a different way.”

I’m already picturing the new commercials, with Harry and Louise sitting around the kitchen table, trying to make sense of how to comply with section 2 of the Voting Rights Act, Shaw v. Reno, and the California constitution in drawing district lines that improve competitiveness.