You're right largely about the coastline and wetlands, but those are reversible trends, and there is no guarantee the erosion and shifting will take a particular direction, anyway. The coastline could alter in a way to protect New Orleans further, especially if controlled.
Second, the old story about New Orleans sinking is repeated so often that few people understand the statement. Parts of the city seem to be sinking, other parts are not, and there is debate on whether any of the measurements even make sense. How do you measure the elevation of an entire city over a period of decades? No individual spot is likely to be unaffected by erosion or contruction, and taking an average of many points barely solves the problem, especially when you are measuring differences of inches. Some methods show no sinkage at all. Overall, there is evidence that the entire delta and river and lake regions are underlaid by a solid bedrock that prevents any real sinkage.
Headlines love to scream the most fatalistic findings, but there are contradictory studies. Here's one, for instance:
http://www.geosociety.org/news/pr/06-26.htm . Given that sea levels are generally rising, and if global warming turns out to be as catastrophic as some predict, cities like New York--directly on the coast--are in more danger in the next 50 years than New Orleans.
Third, all of the Netherlands is below sea level, and Rotterdam and Amsterdam are lower than New Orleans, yet they've been protected by levees and dykes since the Middle Ages. Surely we can do as well as medieval technology in New Orleans. And at least half of New Orleans is above sea level, anyway.
The worst damaged part of New Orleans--the Lower 9th Ward--is above sea level. It flooded because of a man-made construction error. The Mississippi River-Gulf Outlet Canal funnels water from the Gulf directly into the Industrial Canal, and during Katrina the storm surge flooded the MR-GO, pushing water higher than the storm surge (since it was channeled) and over the levees into the Lower 9th Ward, and into the Industrial Canal, causing levees on the IC to top, and in one case shatter. They have since closed MR-GO (which did the same thing during Betsy and Camille, btw), which in itself could save hundreds of lives. People had been after the ACoE for decades to put storm gates on the MR-GO, but they didn't. Hundreds of lives might have been saved if they had.
It's a city that could be easily protected, with no more cost than what it takes to protect many other US cities.