For a club it's always bad in my opinion, kills the primary connection they had with the fan base.
For a franchise it depends on the facts I presume but that's mostly an American thing so leave them at it.
For a Province / Region it obviously can't be done or would have to be restricted to a relatively nearby location. I think currently the provinces have it right with their locations but having multiple hosting cities / towns within the province, like Munster and Connacht have done recently is great. I'd support Leinster having a yearly interpro in Kilkenny even though I'd likely often miss it and waste a game on my season ticket.