I think the amount of fill required to do that would make the project much too expensive to be realized. Plus I think it would be difficult to build a city on so much new fill.
Major changes will have to be made to New Orleans if rebuilding is to be accomplished, but I think it will come in the form of new and/or reinforced levees. Even that is going to be monstrously expensive, and no guarantee that this won't happen again.
Like you, I wish I had gone down there one of the times I thought about it before. I had several chances to go to Mardi Gras, but that's not my idea of fun either.
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Paul