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Southern Ontario is the obvious fit in terms of population, we could easily support another franchise here. If the Leafs' territorial rights issue can be overcome, then Hamilton is probably the best choice. It's centrally located, and they already have a building (it would require serious renovation but it'd still be cheaper than starting from scratch). If not though, if Jim Balsillie wants to build an arena in his backyard in Kitchener-Waterloo I'd have no problem with it. The city is around 500,000 already and growing, and is close enough to draw fans from the west GTA (Mississauga, Brampton, Oakville, etc), as well as Hamilton and London.

Otherwise I think going back to one or both of Winnipeg or Quebec could be feasible in today's marketplace. Winnipeg seems more likely since they now have a modern building. It is a little on the small side at around 15,000 seats, but even with that I don't think they'd have trouble doing better than some of the weaker American teams. Phoenix, for example, generated only $450,000 per game in ticket revenue this year. With 15,000 seats you'd only need an average ticket price of $30 to match that.

Halifax would be nice too but unfortunately I don't think it's big enough to fill an NHL building 41 nights a year.
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