I don't buy that hockey just doesn't work in Phoenix/Arizona. What's different about that market that would cause the NHL to fail while it succeeds in other "non-traditional" markets like Vegas, Dallas, Tampa, and Miami? In this case, I think it's absolutely the owner - or owners, rather. Both Steve Ellman and Alex Meruelo, on whom most of the responsibility for the failure of the franchise lies, were more interested in more interested in building stuff around an arena (condos, entertainment districts, etc) then arena itself. Meruelo, in particular, also didn't have any real connections to the Phoenix area (his other businesses are mostly in Nevada and California). This seems to have hurt his ability to work with local politicians and interest groups. Combine that with the fact that he wanted to build more than just an arena and it's pretty easy to see why the Tempe vote failed. They don't go into it in depth, but the PHNX Coyotes postgame show from last night covers this a little.
Meruelo also just seems to be an arrogant ass. If I remember right, it was under his watch that Shane Doan was more or less pushed out of the Coyotes organization and opened the door for him to join the Leafs.
So, while I think that hockey can succeed in Arizona, I don't think it can succeed with Meruelo as the owner. I fully expect him to not even show up to the land auction on June 27th. He's turned his $400 million investment into a billion dollars. I suspect he's going to take his money and run. I also fully expect him to relocate the Roadrunners to Reno as soon as he can. But, honestly, while it means that fans in Arizona will have to wait a little longer to get their team back, I think it's probably for the best if Meruelo just goes away. Five years is not enough time for him to repair the damage he's done to the fan base. I think if he gets another team it will inevitably fail because fans just won't support him.
What they really need is a local ownership group with Doan as the face. The guy's connections in Arizona are incredible. He was a pallbearer at John McCain's funeral. If he can't make hockey work in Arizona then and only then will I believe that it's not possible.