I think they applied for couple reasons outside the arrogance angle. They knew they wouldnt get it but...
Maybe they wanted to show a willingness to get involved, to show the committee the league, it's current and future players they'll always try and be #1 even if realistically the odds were heavily heavily against them. A, well always fight for the prize type attitude. ( Guelph do you see value in thatt type thinking?)
London tourism has been very active the last 10
Yrs trying to help secure big events to the JLC/Bud Gardens. Every time you go thru the process you learn something new. Another wrinkle to add, an area you can improve on for future bids. It's a practice sorta thing if that makes sense. And having been so active in bidding they've gotten better improving future opportunities for hockey AND other events. And keeping themselves on the radar as players for big events
Last, maybe their just generous and wanted to throw the bid fee the leagues in hopes that it would trickle down to smaller market teams, on ice officials development, or whatever. Ok the last point just for fun