Thanks for the good summary of what is going on.
In my opinion, the biggest culprit is the irrigation system the feds built along with the dam. Actually, I view both the dam and the irrigation system as one and the same because without the dam, the irrigation system probable would not have been built. And without the dam, the native marsh lands would have remained to support the suckers, the river would have flowed freely, and there would never have been a fight over the water in the dam or in the river. But hey, the feds always have an answer to the problems they create, even if everyone but the feds lose.