If a team cannot financially compete in a place like, say, Kansas City, the owners are fools not to relocate to somewhere they would be able to make money, such as Portland or New Jersey.

Define weak. Some crappy teams still sell tickets and some good teams just can't put any butts in the seats. As long as you sell tickets, stay put.

This depends on the fan base and city. Lets say the Chicago Cubs struggle for the next 5 years. Relocate them? No way. But if they are the Expos, who, regardless of record simply struggle to draw fans, then relocating to a city like DC should be considered.

Great...relocate the weakest teams. But where are you going to put them where they will get better support. I don't think there are that many communities that will be able to support a major league baseball team. And this also doesn't necessarily help the problem of competitive balance, and less new owners are found who are dedicated to investing money in making their teams competitive.