Expansion could actually be a good thing for the league. The NHL wants 8 teams in each division. The first two rounds of the playoffs would be within each division. It would create a lot of anger and hatred within all of the divisions. The rivalries would naturally develop, much like they did in the '80's.
The drawback was after about a decade, most were getting tired of facing the same teams come playoff time. There would be more variety with 8 teams per division, and you would think there would be 4 or 5 extremely intense rivalries at any one time under that scenario.
I would most certainly approve a division based NHL. I find the hockey just too bland these days, there just isn't enough anger in the game anymore.