Small market teams do it all the time. SA is the best current example, but I think they built off of the model that Utah pioneered (see what I did there?) in the first place. So if anyone can do it, why not Utah, since they led the way, at least in the modern NBA.
What I am saying is that particular model can only accommodate so many players. Right now, with SA and OKC sucking up all of the oxygen, there's not a lot of diamonds in the rough or draft-day steals to be had. Certainly not enough to field a championship contender. But those things change over time, and there's no reason that Utah can't be a leader in dominating among the small market teams, and competing among the best of the NBA. Utah has the pieces in the front office to pull it off, and they've shown the ability to get pieces like Gobert in place, so the future is bright.
Even still, given the option of starting from scratch, I would rather have the advantages that the location, coaching, and ownership that Dallas has. Doesn't mean Dallas will win championships, but the probability of them competing for championships is relatively higher, IMO.