I went there for a conference one year. It is one of the few places I've been where I've never had a desire to go again.
I have been there a few times for pleasure and many times for business, not being a drinker I looked at its other aspects and although I would never want to live there a lot of our culture/entertainment springs from that birthplace. But using your criteria why would anyone want to live in West Virgina, Buffalo NY, Cleveland, Milwaukee, Detroit, etcetera.
But it wasn't a natural disaster, according to our government the city should have more than handled Katrina. We could have argued that the deaths could have and should have been adverted, the property is another issue however (it could not get on a bus).
They need to sue the LA politicians. The Fed govt provided plenty of funding, however the LA politicians, mostly from NO and surrounding areas, chose instead to funnel that funding into floating casinos.
The levees were built so that the marshland could be drained and kept dry. That allowed them to build all the way to the water. Prior to that, NO was basically just the French Quarter, which stayed dry.
They knew it was coming at least 4 days in advance....they live near BIG water, so the potential was always there. They should have had flood insurance in addition. Do they deserve some kind of assistance? well yes, but they don't get to have gazillions of dollars, that's absurd.