I don't think Edmonton is all that cheap, they just can't get the players to spend money on. Darryl Katz certainly has the pockets to spend what he wants, just that they can't get the players.
Quebec City's metro population ( 715,515 or 725,000 depending on your source) has about 300,000 less people than Edmonton (the current smallest NHL market).
How much smaller/cheaper than Edmonton (a Canadian team) can we make it and have it still work? and why would the NHL want to?
And that's a certainly a concern for Quebec City. While Montreal is a city you can get by in without speaking French, you can't in Quebec City. It isn't anywhere close to as bilingual as Montreal. Although, European players may like it there, the language barrier could be a problem in terms of recruiting Anglophone players.