I've seen pictures of the valley before it was flooded and it was beautiful. Talking to a ranger out there, he told me it would just be another Yosemite Valley and commercialized if it wasnt flooded. He is probably right about that so it is a nice trade off. Really if you have a chance to go its a beautiful and peaceful spot.
I think San Fran pays Yosemite 5 million annually to protect the water. Peanuts for what they actually get for it