I would personally like to see nationals 2010, wherever it is, more of an event atmosphere. This time around, the entire focus was only about the competition itself. There wasn't enough focus on the rest of the weekend. There was no reasonably close "official" hotel, and a lot of people didn't even stay at one of the near-by ones. I like the idea of the competition being an event, as it is a big deal for people to come to it. Take Worlds for example, there is an official hotel, with shuttles between it and the venue. I don't doubt the majority of cubers will be staying there, as well as the party on Saturday night (not really necessary). For me, this nationals was cool to hang out with the people I did, but it got sort of repetitive. I missed out on spending extra time with some others because there was no feasible way to do so.
I didn't like Stanford as a venue solely because of its inaccessibility. The actual competition venue was decent, but the rest of it was awful. Luckily there was one food place close enough that had good food and places to sit and hang (Coho). Other than that, there was nothing in way of food, except for the things that closed at dinner time. The walk to anywhere else was over a half an hour, making it a pain to go anywhere else. A smaller, more city like campus would definitely make the competition run smoother.
On that note, I think holding it in some city, although perhaps more expensive, is probably the best option. The only issue, is an organizational one. I would love to offer Pittsburgh as a possibility, having access to one of the Universities here, as well as possible ties with some others, but I have no way of validating an organizational team. Perhaps someone closer to NYC would be able to secure a better venue. I definitely think that a team of east coast cubers could make up for the lack of manpower that some of the west coast organizational team brings to the table.
Entirely, the main issue to picking a venue for nationals is how to organize it. Its not about where people want it, or where people think it should be held, but finding a place where a large competition can logistically be run. It would be nice to vary the location, but I really think wherever it is held, people dedicated enough will come. This is the national championships of the largest cubing country in the world. If you want to come to it, you should really want to, not just come because its in your backyard.
As to the public vs. private question:
I think the private setting was easier for organizing, but a more open, public one would be nice as well. Chicago was a great example of this. The venue wasn't overcrowded like a mall, but was still open for people who wanted to come and see the competition. It was in the heart of the city and was advertised for participation. Stanford was in the middle of nowhere (unless you have ties to the school) and was very private. I think a good mix between the two aspects would be great, but thats not always easy to accomplish. Atlanta had its many issues, and I don't think a mall type setting would be preferable, but I really do think a public venue is something to look into.