I wouldn't mind seeing it move around. There are plenty of locations throughout the US that seem like viable options (Orlando, Las Vegas, Denver, Chicago, Dallas).

Splitting up into multiple conferences would only be worthwhile if the same amount of content could be delivered to each of the conferences as they currently do in the single conference.

Having a smaller MS presence may not be such a bad thing. When I attended PASS last, I did take advantage of the resources that MS provided. That happened largely due to standing room only sessions - so I found something equally productive to go do.