Generally speaking, chile plants like at least 6 hours of direct sunlight each day. The caveat is that in excessive heat, a bit of shade is a good thing. However, in looking at your local temperature history for the past summer, your definition of "insanely hot and dry" comes nowhere near conditions closer to the equator, which is where most chiles originate. In other words, you live in an area where you could keep them (adult plants) out in the sun all day. So yes, if your your porch/balcony is pretty much shaded for most of the summer, the plants won't grow very much and, as stated above, will take off when the sun shifts so that they get more light.
Â
Plenty of people bring their plants indoors for the winter; I have had chile plants that lasted 4 years this way. (And only 4 years because I decided to stop bringing them in. Hey, I need a break sometimes, too!) They key with bringing them indoors depends upon what you want. If you just want the pods that are on them to ripen up, they need warmth, as much light as possible, and food/water. A sunny window works for this, but if you have grow lights, all the better. If you want them to keep producing over the winter, you will definitely need a bunch of artificial light hitting them unless you have an uber-sunny window. If you want them to go dormant, however, and just have that bit of head start on next year's grow, you can trim the branches and roots, keep them fairly cool, don't give them much light, and feed/water less often.Â
Â
Do plants get sick like people? In a manner of speaking, yes. Below is a link to a site that has crop disease guides that are pretty good. The PDF at the bottom of the page I linked you to is more helpful than the online versions, as the PDF has pictures. Keep in mind, though, that the pictures are mostly end-stage of each disease - sometimes the early stages appear differently. For example, in early blossom-end-rot (BER) the pod walls become soft, almost watery. It's not until/unless you let it go further that the symptoms in the pics show up. You can prevent BER (or even stop its progression if caught early) by giving your plants calcium and magnesium.
http://www.seminis-us.com/resources/disease-guides/