VA Beach's proximity to DC is a non-factor. Nobody is going to drive 5 hours through bloody I-95 traffic to watch a Wizard's game. I wonder if people will drive from Hampton Roads, Williamsburg, and Norfolk to watch a game in VA Beach even with light rail being added, but it at least makes sense as it creates a reason for people outside VA Beach to go to VA Beach during the off-season.
However, if VA Beach is in the Wizard's TV market area, then they'll have to come to some sort of accommodation.
btw, it's 208 miles from Washington to VA Beach, and 342 miles from Charlotte to VA Beach. So, if you're going to complain that they're too close to DC to deserve a franchise, then Cincinnati/Pittsburgh/Detroit are all too close to Cleveland.
And no, it's not a dump. It's a typical east coast beach/resort town with a nice boardwalk, clean beaches, and a family friendly environment.
Anyway, this is what happens when a team owner needs leverage ... they find a sucker. Sometimes the sucker, actually ends up with a team, though...