All valid questions. As an graduate student in the SFSU history program I would say the following...
-SFSU is the #1 feeder of History MA's into phD programs (no question, many students have gone on to very prestigious institutions). That being said, the MA is not the best option for everyone. As my colleague has pointed out, not all phD programs give you credit for the MA (though certainly some will allow you to bypass a year of coursework). The one advantage is that it gives you time to really develop your C.V. in order to become a more attractive applicant for phD programs. There are many opportunities to participate in conferences, get published in/be on the editorial board of the history journal, and because not everyone is looking to move into phD programs, it's often quite easy to add a few executive officer positions to your list of accomplishments. In terms of funding, CSU's are broke. The only funding is through federal student loans, though there are a number of university scholarships that you can apply for to ease the burden (For example: I was awarded a $500 award from the history department and was selected as an 'alternate' for the $1500 university Alumni Association scholarship, so it's definately possible to access some of this stuff). I would say that the program is as rigorous as you make it. I do three courses each semester (one graduate seminar, one upper-division lecture course and a language course). This balance allows me to work two university jobs and serve on three executive boards simultaneously. My program will take more than two years though so it's a trade-off. Based on my experience, and a familiarity with the shortcomings in my own application, I think that as long as you have a strong writing sample and quality letters of recommendation, you should be fine.
On a side note: As my focus is Europe after 1500 (specifically France late 19th/early 20th century) Sarah Curtis is my advisor and I find her to be very actively engaged with the graduate students as a whole and always willing to advocate for me personally. She is a great resource.