I'm going to disagree (lets just leave it at agree to disagree because I think you make a lot of valid points as well) and you're entitled to your opinion on this as also being about as valid as I feel mine is in this.
Because I think with how many players this league has that are either being shoved down to the AHL or going on unclaimed, leaving for Europe, so and so popping up as the next undiscovered talent, undrafted, change of scenery, etc, I think it's fine for the league. Because sure it takes some time for these teams to build up better talent and lessen the "dilution" if you will, but it is something that can be done and we've seen it since the last few expansions, it takes some time but it gets there.
Personally I am not really that keen on seeing more teams just yet, I would wait a while before it happens, at least not in the next 5 years. At best, I would rather see places like Atlanta get a team back, places that were done dirty because of piss poor ownership but were actually doing fairly decent attendance wise and just needed better ownership. The league protects certain teams and allows them to figure out, but then doesn't give that benefit to other places which is just absolute bullshit.
Arizona got the longest rope, so did Edmonton and countless others when they were busted as franchises financially but Atlanta has some bent owners that didn't even really want the blokes that were trying to make it better, to make it better, only to have the league just blatantly allow them to move immediately is a joke. But if Atlanta getting a team again means they need to expand, fine, they deserve a clean slate team.