I dont think they are trying to dicourage OOS students. I think the reason the tuition is high is because the CA gov. wants to educate students whom will be usefull to california and not those who will use CA as a stepping stone to gain education and make use of their skills somewhere else.
I suggest you talk directly to the UCSD residence deputy and device a plan in order to get CA residency.
I actually just moved here to CA on my senior year. I was previously from GUAM, but when I spoke to a residence deputy I was able to gain residency for the upcoming fall term.

Luckily my mom was a resident of CA for 10 years. It would suck to pay OOS tuition.
Good Luck
