I agree about Balsillie. Never mind all the other idiocy that goes with him, but he looked like a total boob in that jersey he wore for the team he was proposing.
I believe the NHL would like to add two more teams to the league, rather then move teams around, however now probably isn't the time and they'll face obstacles when they do go to do it.
As for some possible cities, the one I see a problem with is Quebec. I think that city faces more obstacles than most. Small sports market, players not wanting to play there for various reasons (marketability, French speaking) etc. One of the variables they faced over other Canadian teams at the time was their revenue was obviously in Canadian dollars but their payroll to the players was in US dollars. With a smaller fanbase that made a big difference.
John