It makes sense to Mike Gillis apparently. Considering that he's a smarter guy and likely did a study on this issue...
Seems like it really depends on what you want to value?
From what I have read if you want closer personal evaluations of the young guys, and easier access to them then having a team right beside you makes sense... but then the farm team actually suffers due to harder travel schedules and less time to practice.
Farm team further away gets them away from the scrutiny of the local fanbase/media, more practice time due to less travel, Utica seems to have a very devoted fanbase so also lets the kids experience that same excitement Rogers Arena only occasionally gets these years without as much of the toxic side of things, and they get to potentially be the main focus back in Utica instead of the afterthoughts they'd be in the local market... but then the farm team being as far away as it is seems to have also caused it to be seemingly neglected a bit?
Only sense having a closer farm team makes in the Pacific currently is if the team is in a cup window situation imo. We're years away from that, Utica is still a great setup for the kids. We should appreciate what we have there and give them all the support they need.