You have to look at what you're comparing to though. Mediocre teams that annually finish 10th-18th aren't teams that sell out every game. The Jets just had a game with 5k empty seats. That's probably not their average game this season, but that's a Canadian city that was begging for its team back 10 years ago. They have been in this hole for 4 years now and just committed to it long term. At the same time, they are inarguably closer to contention than we are and could very plausibly make the playoffs this season. That's the choice. You're not choosing between financial success or ruin, you're choosing to rip the bandaid off for an actual tangible plan moving forward. It's crystal clear to me that this is what should be the expectation for sports team ownership.
Nashville's attendance has been steadily around capacity since the trip to the Final in 2017 even though they have been decidedly mediocre for the last 4 years.
Minnesota's attendance has been steadily around capacity for years despite being the NHL's poster child of mediocrity.
Vancouver's attendance has been steadily around capacity for years despite being consistently mediocre.
Dallas' attendance has been steadily around capacity for years despite being consistently mediocre.
Selling mediocrity has been a viable business strategy around the league for years. I think people vastly underestimate the number of people who enjoy watching and can get excited about the 14th best team in the league. Beyond season ticket renewals, most of the people you are selling your product to are people who don't watch a ton of hockey around the league and don't have a detailed understanding of what it takes to be a real contender. Those of us who post here have a pretty good understanding about the tiers of quality among the various NHL teams, but a fan who only watches one team (and maybe only 30 games a year) can easily buy into a team 'having a shot if they can get into the playoffs.'
I think the average person in a seat at the Enterprise Center has a tenuous-to-nonexistent understanding of goaltending, gap control, systems, and defensive coverage. Most goals against have multiple mistakes that culminate in the resulting goal. On any given sellout crowd, I'd be shocked if there were more than 5,000 people in the crowd who could articulate more than one for any given goal.
I think this board's view of a a bubble or playoff team (with flaws that prevent it from truly contending) drastically differs from how confident the average fan is of a team that wins enough games to make the playoffs most of the time.
A team has already left Winnipeg because the market is so damn small. The NHL took boatloads of criticism from people insisting that Winnipeg was full of die hard fans that would support the team no matter what. The 13,000 people who got season tickets in year 1 had to make 5 year commitments to get the best price and 3 year commitments to buy them at full face value. Suites required a 10 year commitment. Then there was an 8,000 person waiting list. For 5+ years it was difficult to get a ticket to a Jets game without paying way over face value. Then season ticket holders dropped off and people from the waitlist started sliding in. The 2020/21 COVID year is the year that all the 10 year commitments expired and the waitlist was depleted by that year. I think their perpetual mediocrity is definitely driving attendance issues, but I think that the reality of the market is a bigger driver. I don't think that they are the norm of what happens when fans consistently 'only' see a playoff team.