Use ngModel and ngOptions to get selectable and selected array reference.
Improve example - make meaningful name of variables. Add list of all US States
De-sort example elements so that testing of sorting is easier
Remove sorting filter - controller will sort instead
Make filtering case insensitive
Fix namespacing
Don't need to sort when filtering
Sort initial set of data
Initiate all-items array with items that are not on selected items list
Make jshint happy