I should probable preface this by saying I live FCW, but in this case, it's irrelevant. My opinions on this move are independent to me opinions of FCW.
With that said; this is a completely and utterly, indefensibly boneheaded move for a few reasons. Firstly, what does WWE have in Stanford? Their HQ and not a lot else. Now, Titan Towers might be a kickass office, but you can't run a wrestling school out of it. Secondly (and this relates to the first point) everything that makes running a developmental fed possible is in Florida. Ya know, at the facility you just closed down. That's where the world class school is, that's where the talent lives (or did, at least), and that's where everybody to debut in the last 5 years lives. Combine the last two sentences and we see that WWE has no school for the developmental guys to relocate to, so for the forseeable future WWE developmental, isn't; since nobody expendable lives in CT, the new fed has no draws, meaning that for most of the tallent, the first time they wrestle in front of more than 50 people will be at a WWE house show, which they have no preparation for; the tallent has to relocate too, and deal with the hassle thereof, but that's no big deal relative to the last two things. Thirdly, this helps nobody in at least the short term. WWE have to go through the expense of setting up a damn new fed, the talent's getting neglected both short, and long term by moving to a location with no facilities or trainers, and since nobody in FCW developmental is able to draw a large crowd, and nobody in CT is going go and moonlight a developmental show, to draw a notable crowd, someone's got to be on the road for 7 days that week. Finally, one of the things that enabled FCW (and to a lesser extent OVW and DSW, as they had their own rosters that weren't under WWE contracts) to adapt to call ups was the fact that (NXT 1 and 2 excluded) top tier guys were able to be replaced as they left, and the fact that how Dusty saw someone was different to how WWE did, enabling a disconnect between who was at the top of FCW and who gets called up. By basing the new fed where WWE management will have more of a say (let's be honest, that's why they're moving it to Stanford) that's not going to be there. The guys at the top of the card will be the guys on their way to a callup which is less of a stable setup since there's not an infinite amount of tallent in FCW, meaning the cream of the crop will get rapidly thinned, a poor way to run a fed (although I admit to that not being a primary intention of a development fed).
tl;dr stupid move, I hate the decision.