Agree with you that there is more than enough talent for a 2nd ECNL team in the South Bay or Peninsula, and there SHOULD be another one added there, as it makes perfect sense for MVLA to have a travel partner(once traveling is safe again) and allows for better local competition. My only point is that there really isn't a club on the pensinsula that checks all the boxes(reputation, coaching staff, facilities, etc.) and would be a good candidate.
The ideal candidates, if not for the unfortunate history, are the Quakes or Thorns in the South Bay, but not sure if they can unburn that bridge.
Here's what I think happens, although it might sound a little crazy.... Thorns doesn't get in since they are associated with DeAnza, and DeAnza was the club that burned ECNL. If Quakes disbands their girls program, as rumored, Deza goes to an existing club(my guess would be Barcelona Bay Area since Quakes has an existing relationship with them, they are in an ideal location - South San jose - and they have decent numbers of players), and that club gets ECNL because of Deza.