Things aren't nearly as grim as you might think. Don't expect so-called "news magazines" like Forbes to tell you so, though. Ohio in 2005 greatly restructured its tax code, particularly those affecting businesses. We may be amending our tax code even further.
Whether a state is "business friendly" depends greatly on the publisher's perspective. Site Selection magazine now ranks Ohio as #2 on the list of states most favorable for doing business (http://www.toledoblade.com/Economy/2012/11/03/Ohio-leaps-to-No-2-on-list-of-best-business-climates.html). Further bolstering this point, Ohio has led the nation for the last half decade in new business growth or expansion (as measured by the Governor's Cup awards, linked), besting even your native Texas.
I don't claim that everything is wine and roses, but our current Governor has turned around the state's finances and has the confidence of many in the business community. As you noted, we are sitting on vast reserves of natural gas, oil, and other NGLs. Our healthcare sector is booming. Ohio received nearly as much healthcare most venture cap funding as Illinois and Minnesota combined (http://www.gcpartnership.com/Media-Center/GCP-Every-Monday/~/media/Files/Every%20Monday/MidwestHealthCareVentureReportYE2012PressReleaseFINALlinkstoreport_c99d.ashx). Cleveland outpaced every other Midwestern city last year by a large margin (yes, even Chicago and Minneapolis). Venture cap investment in other industries is really starting to pick up as well for many reasons (http://www.reuters.com/article/2012/07/15/idUS45702136720120715).
As far as growth being reversible, look no further than Seattle's turnaround the last 30 years as compared to the prior 30. Demographics always shift.