As someone who played AAU and took a few recruiting trips back in the Tim Duncan era, the Joel was absolutely a positive. You have to remember that high school kids back then typically played in small crappy gyms (my high school gym is insane now compared to what we played in) - the #1 thing when you took a visit was how huge and NBA-like the arena was. Touring places like UNC or NC State - they were massive and just felt like playing basketball on a different planet. And Wake already had a bit of a knock being such a small school, so the Joel feeling like a borderline NBA arena, being off campus, plus the crowds back then were solid - it was definitely a selling point. Our football program was a joke so basketball needed a legitimacy boost.
Obviously the Joel is too big for Wake, but focusing only on that or the off campus thing is reductive. It's also just really freaking old. The sound system is old, the food is tired, the whole look and feel is dated. We also sucked for too long and torched our non-student (and student, really) fanbase. Folks forget that Wake's isolation as basically a gated community in Winston-Salem wouldn't exactly invite outside fans in if we did somehow fund an on-campus arena. And it's not like it's really all that difficult for students to get to the Joel anyway - we used to just walk despite there being shuttles. Plenty of campuses that have "on-campus arenas" are a longer walk than what we had.