The thing is He didn't destroy the French Quarter and Bourbon Street, you know where all the sinful activities happen. I find it ironic though that He did destroy a bunch of Baptist Churches and greatly damaged the seminary. The strippers were ready to go back to work as soon as they saw all those military guys.
If God had smited the city He would have included Bourbon Street. It's still standing and in business.
Exactly for a city its size its one of the most religious cities in the country. Esp in the surrounding area. Good gosh for all the "sin" in New Orleans they didnt even have good Strip Bars. you have to go to Memphis, Dallas, or Houston for that