I believe that the American is not a good fit for uconn. Racking up easy wins does not help develop a strong team. It leads to overconfidence and soft play. A more challenging conference would help toughen the players and get them used to playing with some pressure on them. I do think this years team thought their defense was better than it actually was. They got used to playing D for half the game then coasting.
It may not be a good thing for the women's team to mow down all AAC competition, but you can't look at it in a vacuum only from the perspective of women's BB.
UCONN has an athletic dept. with many sports programs. The AAC is by far the best of the G5 football leagues, which puts it only a small notch below the P5 leagues. It's arguably just as good if not better than the old Big East, which was a major BCS football league. The AAC is also a good baseball league. Football is the only sport that matters financially, so if you want to see UCONN get into a P5 league, improving football is the only way to make it there.
Right now there are no better options other than P5 membership, but that possibility is way off in the future, if ever. UCONN needs to stay the course in the AAC to have any chance, however slim, to get into a P5 league.
Also, despite an overall upgrade in competition level for women's BB, the bottom half of most P5 leagues don't offer much more competition than the AAC does against UCONN. When's the last time we lost to or were even threatened by a lower tier P5 team?