Really dumb decision to go down that path. If it's branded as a club for the whole state, it would mean games would need to be played in (at least) both Hobart and Launceston.  It's a good 2.5hr drive between the two. Similar to drive time between Sydney and Newcastle. Distance is actually further away, but there is literally nothing in between, so average km/h is higher. People took the piss when Western United declared they were representing everything from Tarneit to Ballarat. That's half the distance of this. Also, Hobart and Launceston aren't exactly what you'd call friends. They don't even drink the same beer.
IMO, Hobart in the Championship would be the smart move. Too much financial losses in the A-League. If they had mega rich owners that were happy dumping in money then fine, but it doesn't seem like that is the case.