You can get a good idea of what to expect by reading some of the journals here:
http://www.crazyguyonabike.com/doc/c...octype=journal
There's a pretty good hostel in San Luis Obispo, too.
http://www.hiusa.org/sanluisobispo/
Others along the route include Cambria, Montara, Pescadero, Santa Cruz, and Monterey.
http://www.hiusa.org//california/
Many tourists just take a lunch break at a laundromat and do their laundry as necessary if the weather is poor, but it's possible to get by just by hand washing your stuff in sinks and letting it air dry overnight or on the bike as necessary. In warm, dry conditions, I often just put the wet clothes on and let them dry as I ride. Synthetics are the best for this. Most people take way too many clothes and gear on a first-time tour, you can get by with two pairs of riding shorts (even one if it's warm weather) and a change of off-bike clothing.
Many of the private campgrounds along the way also have cabins, though they may be more expensive than a hotel stay.