I don't really get the problem? Arid conditions are a bit nicer for humans since the wet bulb temps are lower. If it's about water, then agriculture uses a lot more than cities do.
Yep. Southwestern states are eventually going to have to decide between their own residents and, e.g., providing year-round lettuce for the rest of the country (Arizona).
The imperial valley - a single farming region in a literal (rather than metaphorical - LA isn't a desert) California desert - uses enough water from the Colorado river to account for 100% of residential water use in California.
Unlike Arizona, I don't ever see backlash about people living in Mississippi.