Yes, it wouldn't make as much money but would be far better as an enjoyment for the fans. Footy lost its soul the moment clubs left their home grounds to play at the plastic arenas like the MCG & Ethiad. I would much rather go see Carlton play in front of 20k at Princes Park than at the MCG infront of 80k.
Having home grounds has a sense of tribalism, which you feel in English soccer.. Going to White Hart Lane for any Spurs fan is tribal, that is our turf which is why the fans and the players cant wait to get back there after spending the year playing at Wembly whilst the new WHL is under construction.
That's all great but the reality of the situation is the vast majority of EPL sides are in dire financial straits and a lot of it is due to upkeep on out of date stadiums. I miss the days of suburban footy but we tend to put on our rose coloured glasses when remembering it. Terrible facilities (particularly toilets), poor viewing (especially for kids), reduced crowd sizes etc. Ground rationalisation has been one of the smartest things the AFL has done. It's allowed for bigger crowds, often much better conditions for supporters, a shared burden (so no one club has to worry about the upkeep on stadium maintenance), etc. Sure playing in front of 20,000 at Princes Park has its appeal but in this day and age that would spell the end of Carlton.
That sense of tribalism is still very much evident at games if you take the time to look for it (eg standing room M10 at Hawthorn games, Richmond M1, etc).