Instead of using ideology driven lists, why not use a more extensive list of qualifiers?
That said, I will use Forbes list of the best to the worse based on quality of life.
Forbes worse states are as follows:
1. West Virgina
2. Kentucky
3. Mississippi
4. Ohio
5. Arkansas
6. Indiana
7. Missouri
8. Oklahoma
9. Tennessee
10. Michigan
The Best States
1. Utah
2. Hawaii
3. Wyoming
4. Colorado
5. Minnesota
6. Maryland
7. Washington
8. Massachusetts
9. California
10. Arizona
America's Best States To Live - Forbes.com
Health lifestyles, healthy living?
How about the parameters of the OPs question actually be established.
If you are asking about politics, it seems one would look at waste in spending, duplication in agencies, state deficits, corruption, gerrymandering, nepotism, etc.
Just because people are happy doesn't mean that the political system is sound.
I have to disagree to a point but not your entire analysis.
I have lived in four states during my adult years, California, Washington, Wisconsin and Minnesota. I disliked living in Wisconsin because as you stated their bureaucracy drove me nuts and the state agencies sucked, therefore my quality of life wasn't as good as the other three states. You will note that Minnesota, California and Washington are all in the Top Ten. The states by their legislation made the quality of life better and contribute to health lifestyles/healthy living, education systems, air quality, crime control, roads/infrastructure etc; all the things that are important to a happy and satisfied life. And all are part of Forbes analysis. To me, it's where politician's put their priorities and the concept of state governments is to make their state a great place to live. That attracts not only new residents and keeps their current residents in the state, but it also attracts new businesses.
South Dakota is ranked 39th in quality of life and South Dakota has a very friendly business environment. BUT a major obstacle is not many people want to live there. Like Minnesota, South Dakota has cold and almost unbearable winters, yet Minnesota keeps growing and keeps it's residents because of it's quality of life. Minnesota has one of the finest health care environments in the country, people live longer, they are healthier, Minnesota has always been ranked in the top for it's education. South Dakota ranks high on "freedoms", but is low on quality of life per Forbes. The freedom index hasn't transferred into happiness for South Dakota residence.