All this talk about the arena location is great for out-of-towners, but as a local resident there is more to the variance and success of the Coyotes than location.
The early years when the team played in downtown Phoenix was the years of Numminen, Tkachuk, Roenick, and Khabibulin in their primes or nearing them. It was a one line team that had an all-star first line, but no depth to help the team go deeper in the playoffs. You shut down Roenick & Tkachuk, it was game over, and that happened far too often. Part of the problem was the lack of focus and effort on developing players. There is a long stretch of 1st rounders that were complete duds, and drafts that produced no legit NHL talent for the Coyotes.
By the time the team was sold, the stars like Tkachuk were traded for Nagy, Roenick essentially for Langkow, Khabibulin for Mike Johnson & Paul Mara, and Numminen for Mike Sillinger. During the Tkachuk-Roenick era the team made the playoffs every year, except the year they were dismantled. Since then, the Coyotes only made the playoffs one time on the back of a Hart nominated Sean Burke goaltending streak with Bobby Francis as the Coach of the Year and the Homer Line (Nagy-Langkow-Johnson) leading the team in scoring.
This team has failed to properly build, even from the time it was dismantled from the Tkachuk-Roenick era, and instead it's been a constant rebuilding phase that was attempted to speed up with failed free agent signings like Tony Amonte, Brett Hull, Owen Nolan, and Jeremy Roenick past their primes.
Phoenix is a bandwagon market, it always has been. The fans will only come out to see a winner, a team that is going to the playoffs.
Many outsiders fail to see the direct link with the failure of the franchise, but the locals are not blind to the fact that it has been Wayne Gretzky's hand picked selections and friends that have hurt this team all of these years. From turning away Benoit Allaire as the goaltending coach to replacing him with Grant Fuhr (when he comes to town), hiring Paul Coffey as a powerplay coach (when he comes to town), hiring Ulf Samuelsson as the assistant coach, hiring Pat Conacher as the assistant coach who then went to the farm and stunted the development of the players, and this only after Marty McSorley had made sure the farm wouldn't produce NHL talent. It's commonly referred to the FOG, Friends of Gretzky, and it includes management like when Cliff Fletcher was the acting GM and dismantled the playoff team, succeeded by Mike Barnett who had been a player agent for some 20 odd years.
In the 13 years that the Coyotes have been in Phoenix, it was only two years ago when Don Maloney was brought in that this team looked like it had any real sense of direction. I think this team is somewhat on track in terms of building, but it's still hampered by the FOG in terms of coaching. When the FOG leaves the Coyotes, you will see this team develop into the best incarnation you have seen in Phoenix, but they need a real coach to get them there.
Maloney has his faults too, getting his brother-in-law (Sulliman) a job as the associate coach after spending 15 years on Wall Street after a brief NHL coaching gig and NHL playing career.