> property value of people living in a desert more valuable
People living in the desert (outside of phoenix and Vegas anyway) are probably thinking there is much more value in not being in the suburbs honestly, and I seriously doubt they want to trade this for more neighbors.
They still want infrastructure investment though, because there is little appeal in their taxes funding more development in urban centers that are already rich or repairing coastal areas after the next hurricane, etc. Forward looking investments in rural areas is a great way to boost the economy generally, to curb the scary rise of populist madness, and start to fix one of the major sources of division and angst in the USA and other places. If desalination makes no sense, how about a space elevator, hyper tunnel, or you know, decent cheap old school passenger rail options?
> We dreamed, built, and just wasted money.
A bit more nuance than that. First, there are reasonable arguments that desert living is/can be more energy efficient than heating the great frozen north, even prior to cheap solar. Whether things happen or we give up comes down to who is politically important more often than what is physically or economically easy. And one thing that is often forgotten about such efforts is that even projects that fail can be a net positive.. that is why we don’t cancel the space program after the first rocket crashes.