I guess one question is whether the bulk of the illegal immigrants in Arizona at any one time are using it as a residence or just passing through. This would definitely make it less attractive as a residence, but its advantages for transit are considerable.
The prison business has had some curious effects elsewhere a judge went to jail up around Scranton for abusing his power to send kids to jail for offenses that ordinarily might've rated probation before judgment; he was compensated by the company that ran juvenile prisons up there.