I see it more the other way.
Remember the Regent/King location will be right next to the courthouse, so that's already breaking up the Commercial front along King street.
But it also synergizes well with the use, as far as parking goes. The Courthouse will be busy during the day, but in the evenings it will be empty, so the Playhouse with evening events will draw more activity into that area after work hours.
The new location is also MUCH closer to the downtown food locations; it will have 3 restaurants on the corners around it, 3-4 more pretty much on the blocks around it, and more beyond that. So "Dinner and a Show" has a lot more options for people to do.
There will also be more foot traffic around it, making it's Marquee advertising more effective; people are more likely to walk around it (especially with the courthouse) and see what shows are coming and may decide to get a ticket (not so much if you're the accused going in for a case; but lots of lawyers, clerks, and people with bog standard cases will be around to be motivated by the advertising)
The synergy loss they take from not having the Convention Centre next door is something to consider; but I think the potential gains are that much stronger. Especially since it is not THAT far of a walk between the two locations; 5 minutes even with lights can get you from the Centre to the new location with time to spare. (I know because I've done it very regularly over the past few years

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