I've heard it's still very good, as the French Quarter was spared much of the damage in '05. In fact, if there was a complaint about Mardi Gras, it was that it was too crowded. Like shoulder to shoulder claustrophobia-inducing crowds. Nowadays it might just be the perfect density of large crowd.
Bonus: Not only will you get wasted, hear great music, eat great food, and surely get laid (if you want). But you will take pride in knowing you had a small hand in helping out a city that still needs folks to help restore its glory. No, it won't feel like work or sacrifice, but going there and spending your hard earned money will be very much appreciated. Just stick to the locally owned places. I recommend the Frenchman Hotel. Very reasonable and just a nice place.