Seems pretty stupid to set up in cities that don't have an NFL team really. And looking over the AAF teams weren't that far removed from NFL cities either. They only had two teams that were in States that don't have NFL teams.
As for differences between the old XFL and the new XFL, I suggest you watch the video that Chambers posted. It outlines the differences quite well and not just between the new and the old, it also compares it to the the AAF.
I don't know. I get the sense that you just don't want the XFL to succeed. Either because you thought the AAF should have lasted or because you dislike Vince McMahon. Which, honestly, I wouldn't blame you for the latter. The guy is pretty deplorable. But so far the new version is much better than the old.
The one big downfall I can see is calling it the XFL again. It would have been better to distance itself from the old.