I agree with this. My suspicions are that there would not be any significant detriment to placing a team in a nearby market to an existing one. Actually, in many I think there would be benefits (I had this discussion about a year ago with respect to Brantford). Territorial rights are much less of an issue in junior hockey than they are in the NHL IMO.
I probably agree with you there, but the OHL would certainly have to look into that if Niagara Falls gets a suitable arena and an ownership group that wants to get into the OHL.
I'd like to see a study if Niagara, ON is pulling fans from over the border at all. If so, they may have a legitimate territorial claim.