I ride in one of the Mardi Gras Krewes in New Orleans, and we will be riding. Some areas of New Orleans were not flooded, or received only minor damage, and are rebounding quite nicely. Other areas may take 2 - 4 years before they come back (ninth ward, New Orleans East, Chalmette).
We are making it a point to give the kids a break from spending 35 days in a hotel room, having to spend 4 weeks in a school in SHreveport, and then moving back to New Orleans. The kids are just as stressed, if not more, than the parents.
I would expect a pretty good crowd during Mardi Gras.