You are right when you say that most of our land looks baron when you see it from 35000 thousand feet above the earth but most of that land is either not livable or difficult to reach. However when I think about how man is looking for possibilities to make colonies on Moon, Mars and other planets so why not in deserts and hard plateaus too. But even that will not solve the problem.
Yes, Earthship homes that will consume lesser power, lesser space and provide better facilities will be an opt solution.