Question 1:
Start by improving the soil. It will hold more water if it is loose and rich in organic material. Hugelkulture would help if you have the
wood resources. If you cannot bury wood then simply loosen the soil, don't till or invert the soil. The best tool for this is a broadfork for smaller jobs that can be done by hand ( about 2 acres) and a subsoiler like a chisel plow for larger acreage. The next step is to cover the soil with loose organic matter. Doesn't really matter what just needs to be rich in
carbon. Wood chips and
straw are the two staples but other stuff will work just as well. Plant a bunch of soil improvers like legume trees, alfalfa, broad beans, lupine, etc.
Question 2:
You need trees and windbreaks to help minimize dessication. Swales and catchment spaces (ponds, dams) will also assists in improving hydrological balance. Get as much water on and in your
land as possible. Terraces are also very productive means of production in sloped land. On flat land you can replicate this effect with crater gardens and terraced high beds (man made hills will steps). Yes i would consider it bad that everything is dry and dead. But you should concentrate your resources while sustainably expanding them. If you have limited water focus it on plants that need it. Train your plants to go longer and longer without water. Don't be tied to every 2 days plants will respond to "training." Shade will also reduce water loss, many plants like peppers perform better with some shade or dappled light.
Question 3:
Drip is good, subsurface drip (irrigation) is better. Subsurface irrigation involves delivering water to plants at the
root zone not the soil surface. This is accomplished with pipes drilled in the ground anywhere from 6 inches to a three feet down. Water is
feed through the pipe, preferably slowly (drip) and to the root zone where it is need, very little to no water is loss to evaporation. I am experimenting with using bamboo as it is biodegradable and hopefully by the time it breaks down the system will be established
enough to not require additional irrigation. Plant selection is also very important. Growing olives where you live is a lot easier than growing pears.
hope this helps, just a few ideas to get you started.