Dear Flyerdog,
I recall the 2017 news conference in which LV got a franchise, and Quebec didn't. Bettman and Daly acknowledged that Quebec has a wonderful facility. They also felt management would be competent. But:
1. The NHL's contracts are in U.S. Dollars. The Canadian dollar is about 75 cents on the Greenback. That puts a big strain on small Canadian markets without big broadcast turf.
2. Unless another team were to be added west, Bettman and Company made it clear they want balanced conferences. Moving Arizona to Quebec makes that a problem. And remember, they added Seattle, in part, for geographical balance.
Another thing some folks mention is that Bettman likes new franchises in areas that are not hockey hubs. He wants to expand interest. On that score, moving a team to Quebec doesn't help. BTW, the governor of Connecticut has offered upwards of a billion in various incentives to put a team in Hartford. But that violates Bettman's belief in new hockey markets.
All that said, if Arizona does bomb, there's a lot written about Houston getting a franchise. It would give Dallas an instate rivalry and the market is huge. You could make the case that Quebec might make more sense then as an expansion team. But my gut says Bettman wants Phoenix to last. But they need a venue.
I hope this helps.
Howie