When would the #1 seed NOT get the location it wants? Look at this past year.. all #1 seeds go to their preferred opening location. And IIRC, those opening locations are not tied to a specific region and can be moved.
So what does this really do? If Kentucky is the top seed, they would get Des Moines and then Louisville.. and I imagine that's exactly what they pick. It's not like you can pick your region.. where I'd argue that Kentucky might be better off playing out West for 4 games (stay there for 2 weeks and not travel a lot) and play garbage teams...