Your comments are spot on. Tournament should not be held at the Palestra even though it is truly a grand old place for exactly the reasons that you have stated.
An alternative is to hold it at the Barclays Center - Brooklyn. ACC will returning to North Carolina after next year's tournament. Mass transportation options exist for six of the eight teams. Certainly not centrally located for all teams, but less distant than Philadelphia. NYC is the media capital of the world etc.
Cost may be an issue but does the IL really want to make a major commitment to the tournament?? A challenge may be having enough fannies in the seats but it might give them the excuse to expand to eight teams.
The other option is to bag the tournament as the Ivies cannot agree on a location -- that will regrettably not happen.