If I'm thinking of what you're thinking of...
saw one at a CA gunshow last year sometime.. it WAS an AR, only the pistol grip had been removed (easy chore) and a molded plastic-rubber palm-swell of some kind added. I didn't handle it, I'll admit, but it looked pretty ungainly. The palm swell forced your wrist off the center line of the weapon, and it looked difficult to control. Could be wrong on that one though. Like I said, I didn't bother to handle it.
Also, last I heard folks in CA were talkin about "anything mounted on an AR reciever is an AR" language for the last ban. Don't know if it passed, but I'd suspect so, honestly.
Personally, if I were in CA (and not intending to move) -- I'd prolly go for a Mini-14, fixed-mag SKS (still legal, I *think*), or (if I had the money) CA-legal M1A. Whatever your views on the standard M-16, past a certain amount of PC-kowtowing modification, I don't think a crippled AR is worth the bother. Rather like trying to weld a couple scrwedrivers into a servicable hammer -- it might work, but since you've already given up half the benefits of its original form, you might as well go for something that still works as designed.
Finally... somewhere on TFL, someone posted a Brit-designed (I think) -- pump-action version of the AR. Same ergonomics, you just pump the forearm to get it to cycle. If you're sold on the handling of an AR (which is great, I'll admit) -- might be something to look into. And you can have all the other "evil features" since you're not semi-auto.
enough rambling thoughts -- hope you find what you want!
-K
PS .. if you can find such a palm-swelled monster as I saw, I imagine it would be pretty easy to swap out said monstrosity for a standard pistol grip. You would, of course, be breaking the law, but I suppose that's up to you to decide. I've never seen officers patrolling a firing line saying "show me your papers" -- but in CA, it wouldn't surprise me.