The growth strategy would have worked if the teams didn’t stink. Success draws fans, failure tests fans. The Thrashers made it to the playoffs once and got swept out of the first round, the Coyote continued the franchise tradition of making the playoffs and losing the first round then they did 6 seasons in a row without making the playoffs, not much reason for people to “discover” the team. Even “traditional” hockey markets like Edmonton and Calgary started having attendance problems when the teams hit the skids. Meanwhile the Sharks regularly get to the second round of the playoffs and have a good fan base and make money.
Success on the field makes for success off the field. Doesn’t matter what the sport is or whether or not the location “should” care about it. People will pay to watch perennial winners, and they stay away from perennial losers in droves.
Nothing against southern teams or their fans, but hockey in places like Nashville, Phoenix, Atlanta just seems... unnatural.