Everything seemed to spiral out of control when they moved Glendale. Arena location is very important for a 41 home game a season league and you'd have to think a lot of teams would struggle with this. If they would have been able to get the arena built in the early 2000s in Scottsdale/Tempe/Downtown Phoenix it would have made a big difference. I have lots of snowbird family down there so I've been visiting the Valley a lot, and that's a tough trek to make in rush hour in particular. Vancouver has lots of public transit that feeds the arena and that makes getting in for the game from the suburbs on a weeknight much easier, let alone the amount of people living in walking distance. Phoenix area has next to no public transit. It took me 3 hours to go from Mesa to see the Cardinals that included getting a 20 minute ride to the light rail station (before the days of uber).
I don't know all the details of why any arena deals that were more central fell through, but it seems to me they went chasing the maximum taxpayer funding they could receive at the expense of their long-term sustainability. This combined with the losing just spiraled things out of control, and money-losing businesses seem to just attract more charlatans as owners.
The league did what they could to save the team (aside from fixing the McDavid lotto), but the series of bad decisions just made things untenable. I'm pretty confident there will be an expansion team there at some point, just too big of a market that now has some hockey infrastructure in place.