Just to clarify, first, UConn is not a small, urban catholic college like Providence, Seton Hall, St. John's, Xavier, etc. UConn is a State Flagship university and most of those peer schools are not in urban locations. Each has unique needs and that is why the 'old' Big East failed and likely why UConn is not the best fit for this 'new' Big East over the long-term, though it is a better short-term home than the American.
Second, yes, Kentucky and Louisville play at city-owned (though one can argue that each respective University owns its city, just look at the deal U Louisville created for itself with the Yum center the shaft that the city got in return) while Indiana has its own arena. But, its 27 miles from Babbridge Library to the XL Center while its 2.2 miles from the Young Library to Rupp Arena in Lexington (Kentucky) and 2.2 miles from Ekstrom Library to the Yum Center in Louisville. That's 'on-campus' for all intent.
As for the AD, I agree with him. There are folks in Hartford who believe one of UConn's key missiosn is to say Hartford, whether it be keeping the XL afloat or getting more folks on the street of downtown Hartford (UConn Hartford campus). That is not the University's mission and pulls focus and money away from what UConn should really be working on.