Whether you believe in the policies of our government or not (remember, we vote for these people - you should vote), you can't sell a new toilet that still guzzles lots of water. Treating the sewage so it is easily reusable costs money, you either pay it in taxes or via a fee based on usage. Saving water makes sense regardless of where you live. Sucking that water out of the springs in FL has lead to sinkholes and the shrinking of the Everglades (blame lots of things, but water extraction for homes is part of it).
The federal regulations are leading to being more conservative, which keeps plant costs (NIMBY hassles and costs) down, and lets us do more with a growing population. You can see this in mandated insulation levels making new houses more efficient and comfortable, low-flow toilets, vanity faucets, showerheads, etc. All new stuff has to meet those regulations, and as people replace older stuff, they have to go with the newer ones. It's all part of the Energy Star and conservation thoughts.
Now, picking well performing products out of the mix of these conserving products takes some research and some adjustment on occasion. Just like the mandated fuel efficiency standards for cars has improved over the years with little to no performance impact, we're starting to do that with other natural resources as well.