So, what tends to happen in areas with variable rain, is that when a drought hits, they get constructed, and then it starts raining, there is no reason to use the $500/acre foot water from the Desalination plant, instead of the $10-$125/acre foot [1] from rain. The only places that it is economical to build them is where we are guaranteed that they will be required.
If we could be certain the drought would continue, then yes, we would have desalination plants being built all along the coast (as they are in Singapore, Dubai, etc...). Alternatively, we could just bite the bullet and say we need this type of reliability of water supply and just build them. At that point, we could end all the nonsense about "conservation" in residential areas when there is an agricultural water supply issue. None of the conservation that people are doing in residential areas is going to make a spit of difference to the California water shortage situation - it's purely political posturing.
[1] http://www.ppic.org/content/pubs/report/r_1112ehr.pdf pg 24, footnote. ".... In 2005, under a similar deal, MWDSC did not exercise the options to purchase nearly 130,000 af because there was ample rain, and growers again received just the installment ($10 per af, versus a final purchase price for the water of $125 per af)"
http://www.noozhawk.com/article/santa_barbara_desalination_p...
http://www.mercurynews.com/science/ci_25859513/nations-large...
http://www.mercurynews.com/science/ci_25859513/nations-large...
Natural gas generators are clean enough that I don't think it would be a big problem putting one by the ocean.
The pipes have to go pretty far into the ocean anyway - they can't discharge right on the beach.
And even the old ones that do use evaporation, recapture the energy, so you really only need to evaporate the water once, other than losses.