That right there is what I think of when people say things like that. (And don't forget the fact that California and the desert southwest have to support an ever increasing population with a water supply that continues to shrink). And to throw in another example...I live about an hour away from a town that has been hit (or almost hit) by a tornado every couple years (no joke) for the last 15. They rebuild time and time again. Heck, we could use Moore, Oklahoma as a well known example. That city has been hit by tornadoes multiple times and sometimes even taking roughly a similar path through the city!
Think about how many times Anchorage gets rocked by major earthquakes and rebuilds the damage. The San Francisco Bay Area has rebuilt BIGGER after Loma Prieta. There really isn't a truly risk-free place to live.