Very true. The barrier was always UConn, not Hockey East. Though, it was fair for Hockey East to have no interest in the years that UConn didn't fund the program, forced them to play in a subpar facility, and as a result the team was one of the worst in the nation. Since UConn decided to back the program as it should, they've been a solid addition to the conference.
As to the capacity of an on-campus rink, COVID definitely complicated the process. I still believe if you're going to build the rink, make it future-responsive. It's difficult to assume that 10 years from now, everyone would be scared to attend a sporting event. With that in mind, spending $68 million for a 2,500-seat arena is not a good investment. It serves little purpose, spend all that money for a brand new facility to host games against Merrimack and Brown while the big games are outsourced to Hartford? Still a dumb idea.
Up the capacity to at least 4-4,500 and include requisite accompaniments such as locker rooms, practice/training space, some form of box seating, and solid A/V capability. In the interim it'd allow for more spacing of fans and down the line would be more suitable as a permanent home.
XL is not a long-term solution for UConn hockey, or UConn sports in general. The basketball teams can easily leave and play 100% of games on campus with little adjustment or ticket demand problems. The hockey team moving to a 2,500-seat arena permanently would pose problems.