Desalination used to be expensive. In the last 4-5 years ultrafiltration (UF) membrane technology for the pre-treatment process plus double pass reverse osmosis process to produce potable water has resulted in costs dropping to around $500/acre foot, ($0.50/m^3 or 1000 liters).
Completely reasonable for coastal cities, if we could be certain they were needed.
My understanding is that desalination doesn't give you crystalline salt, but rather more salty sea water back. Of course you'd have to be careful where you dumped it as a small bay doesn't mix that well. I don't see why you couldn't pipe it out 1-2 miles from the coast. It should mix quite well.
http://www.technologyreview.com/featuredstory/533446/desalin...