When I attended the Region X Conference in 2009, there were three different groups working on bids at that point: one in San Francisco, one in Oakland (perhaps it later became San Jose?) and one in Anaheim. They have all been aware of each other's efforts. I don't know much more than that.
Personally, I'm wary of having a convention in Orange County during Disneyland's highest attendance days of the year, but I'm waiting until after I hear their bid presentation to make up my mind. If they're planning on having it in Irvine or somewhere away from Anaheim resort traffic, it wouldn't be as big an issue. I suspect they've addressed those concerns, given that it shifted away from being an Anaheim-focused bid into a broader Orange County bid. But everyone will accuse me of being biased toward Section 4 anyway...