I agree with Go Green and P38. Princeton knows how to win at the Palestra, they do it with regularity.
The Palestra was an obvious place to play the initial tournament, it's the flagship basketball arena of the league. It's unfortunate that a below .500 Penn team will wind up getting home court advantage, but the alternatives were :
1) Split the women's and man's finals. But the league didn't want to do that.
2) Play at the home court of the top seed. But which top seed, the men's or women's? What if the top seed's home arena isn't big enough to host?
3) Host at generic available decent size arena. The one in Bridgeport, CT was one option offered up in a separate thread. Issues are that a) limited charm in having the initial tournament not on/near one of the campuses; b) unclear what attendance will be, the Palestra will look good for TV regardless.
4) Don't have a tournament because 'fair' would have the winner of the regular season go to the tournament.
I'm guessing if this tournament is a success then the league is going to have to figure out how to make option 3) work.