are Betazoids really so vain that the shift of Starfleet HQ is enough to mitigate all their concerns?

I think this is actually a really big deal, especially since the Betazoids' concerns were chiefly about security, and the Federation is hardly going to let their seat of government fall.

But "the Federation is too Earth-centric" is a concept that's been played with since...at least the PIC era, so I thought this was pretty significant.