Sure. The grass certainly turns brown around here. But that is just a water conservation state for the grass. It doesn't mean it is dead. As soon as it does rain again, it will turn green again. That is not a reason to water a lawn. A brown lawn functions equally well as a green one. In fact better as you don't have the same need to cut it.

I imagine there are climates that are better for grass or certain species of grass that are very drought tolerant. However, in my experience, not watering a lawn will kill it. I have a few patches in my lawn that were killed this summer by lack of water due to a poorly designed sprinkler system.

The primary function of the lawn is decoration, though, and most people seem to prefer green grass.