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I have seen manzanita growing OK in Vancouver and also in the wild in Central Mexico - I don't know what species were though. But in both cases it shows they can take quite a bit of moisture over certain periods of time.
The pink form manzanita that you mentioned may be a natural dwarf form?, it happens.If you don't get any snow I could send you some in a couple of days - enough to sprinkle all the manzanitas!
Robert- I thought of your drought problems as I read this article by a fruit farmer who is giving up because of the drought... http://www.myjobdependsonag.com/the-end-of-the-figlady/