I can never find proof of it, but I'm 99.99% certain that at some point between VGK and SEA expansion (almost definitely 2020 after the COVID qualifying round) Daly was in the newspaper or radio talking about the possibility that they go to 36 teams and change the playoff format to include a qualifying round. Presumably the top-3 in each division would automatically qualify and then the 4th and 5th place team in each division would have a 3-5 game play-in round to earn the 4th spot with no more cross-division wild card scenario. It would allow 20 teams to "make the playoffs" and earn a minimum of 2-3 games of home playoff revenue. So even though the league is 36 teams, 55% would still make the playoffs each season, which is more than the current 50%.
As for the argument that the NHL shouldn't have the most teams since it's the least popular sport. That's actually a reason that they should have the most teams. No other league relies as much on gate revenue and local TV revenue. Adding more markets increases these vital revenue streams.
It also creates like 90 additional jobs for the PA so they should be in favor of it. And as far as rivalries go, you have to think that the emphasis on division play would increase. The negative would be a decrease in cross-conference games which already suffer, especially from East coast fans perspective.
None of this is to say that I would personally make the call for expansion as Commissioner, just pointing out the reasoning for it and that it's not all that horrible as some people are making it out to be.
Lastly, it's mind boggling how few people seem to understand which markets exist in the NHL and why. It's not a hierarchy with Gary Bettman at the top making decisions for the league, nor is it actually the league (governors) plotting a geographic footprint and deciding which markets to place teams in via expansion and relocation. NHL teams rely on ownership groups that have the financial ability to operate a team in a city that owner(s) like with a suitable building and mutual desire to host a team. When Quebec moved to Denver, they didn't have all of those things. The reason Arizona still has a team is that despite losing money in massive amounts, they still have an owner who wants to continue to fund his team and make a go of it in that market. The reason Winnipeg got a team back is that the Thrashers were sold to a group who had no desire to operate a hockey team and so they sold it to someone who did, and had the building and market. Of course Bettman and the governors can influence these things and get final approval, but there are extreme limitations on their powers to dictate which markets the league is in.