The Palestra is small and it is kind of a pit, but it has panache on the East coast. If you have that tourney at the United Center, you will play in a half empty arena with 10 beat writers and your tv partner as the only media in attendance.
There are many big name sports journalists who live and work within a 2 hour drive of the Palestra who would love to spend a day there watching great college basketball and wax nostalgic about the glory days of the sport.
I definitely can see where younger fans might not understand that, but for some reason, the east coast media loves the Palestra.
Plus each team would only have to bring about 700 fans to sell the place out. And Philly would support it big time. It is a big college basketball city.