I agree completely. It just doesnt make any practicable sense to me either. I'm sure a team in Markham or Downsview would do extremely well, however, it would be at the expense of MLSE & the ACC. Hamilton is just far enough away to ameliorate concerns over any tremendous loss of revenues (concerts etc) & would be a natural rival (for the Sabres as well), they have an arena, retro-fitted & good to go. Studies suggest the GTA & Southern Ontario could support 3 teams, and Im sure it could, but it doesnt make it sensible or rational.
Regardless of whether southern Ontario could support 3 teams or not, there's no way in hell (or that I can imagine) that the League is going to put 2 more teams in that area any time soon. One, ok, but not two. I could see, perhaps in another decade, a 3rd team going in there, but if the new arena in Markham gets the 1st new team, then by the time another decade has passed, Copps in Hamilton is going to be a very old arena.