We can't forget that SOME of those who lost everything still have jobs available to them in the N.O. area. Even if those jobs are TEMPORARILY lost, the hotels, casinos and restaurants will re-open. Businesses that were outside of the flooded areas have already begun to reopen, one of the many problems is people lost their place to live.
My friend employes a few hundred people just a few miles from downtown, his building survived, he reopened part of his business last week, part of it this week. ONE of his problems is the employees got moved out of town! So some of those people just want to rebuild and continue on with their jobs.
ALSO, on a totally different line of thought, consider the "culture" of New Orleans and compare it to the "culture of Indiana, Iowa, Wisconsin or anywhere else!!! That place is UN-like anywhere I have been on earth. A mix between hard core Catholics, VooDoo, strong coffee with chicory, Jazz Music and some serious political corruption all stirred up in a big pot of rice & beans and crawfish. The lifestyle is slow, laid back, casual with extreme poverty and extreme wealth and all mixed in with corruption. It is both big city and local neighborhoods at the same time. Crime and graft are accepted as normal and all of it is what makes the Big Easy a very special place to live.
And let's not forget the climate issues. How many folks up north moved down south to get away from SNOW.
So while we might all fit into the communities we live in very nicely, the residents of New Orleans may not fit in, and probably don't want to fit in to our life styles. And put the shoe on the other foot, would you fit into the French Quarter if a tornado took out your home? Sure its nice to visit, but could you live there?
I think the offers by the midwest states are generous, but they are somewhat misguided to think that people want to give up everything to move to their states.