The following teams to be relocated: Carolina, Nashville, Atlanta, Florida, Phoenix, Tampa Bay, NY Islanders.
New NHL city's: Baltimore, Portland, Seattle, Houston, Milwaukee, Winnipeg, Quebec.
New Divsion set up
. . . . . .
Detroit, Chicago and Columbus would move to the East to balance out the conferences.
So let's see...
First off, you'd like to switch out the two Florida teams in part in exchange for having two Texas teams.
I'm not sure that a team in Houston would receive any more support there than the Panthers do in the Miami - Sunrise area. But I suppose if you're considering the whole package (two Texas teams) to have more potential than the two Florida teams, then I suppose who knows. It could still come down to the same scenario that has befallen the Florida teams, in that virtually never have the two teams been strongly competitive at the same time, so no real rivalry has developed.
Secondly, you'd like to trade out Carolina and Nashville, and in turn have teams in Milwaukee and Baltimore...
... Still two fairly young franchises, in the grand scheme of the NHL, both of which have shown signs of decent or growing support... in exchange for Milwaukee which is almost certainly at its major league franchise saturation limit, and Baltimore, which is no more a proven hockey town than Raleigh, and which already has Washington serving the general area.
Thirdly, you'd like to take away the Islanders, which have a famous NHL history, and with which the only true problem is getting a new arena. Every team in the League eventually needs a new arena, and if that need comes at a time when the locals don't wish to spend for an arena, then almost any team in the League could be threaten with relocation as a result. As someone else said, the Islanders may well eventually be moved, but likely or hopefully not out of the NY metropolitan area.
Now that leaves Phoenix and Atlanta, in exchange for two of either: Portland, Seattle, Winnipeg, or Quebec City.... Well, if the Coyotes end up back in Winnipeg then I suppose it's only fair. As for the Thrashers, it would be a 'no turning back' decision to relocate yet a second team out of Atlanta, and for that alone I wouldn't take it as a decision that the NHL should make without first making great effort to try to keep the team there.
Certainly, Portland, Seattle, and Quebec City would all be good options for the NHL, but I'm not sure that there are three other current NHL teams that should be relocated.
I do understand what seems to be one of your objectives... that there be more western teams, so that Detroit and Columbus can be put in the East... but there are other ways of resolving Conference alignment issues. Nevertheless, let's hope that Expansion (or relocation if necessary) can find ways to get more "western" teams into the League.