Miami Seaquarium can't be that bad, given that Lolita is still alive and healthy after the better part of 45 years. Yes she is the only Killer Whale there and her pool is relatively small but otherwise she isn't lacking in anything. She has consistency, which Killer Whales seem to thrive on. She seems to have had the same trainers for a long time, she isn't lacking for attention from them. She gets fed no matter what. She at least has the Pacific White Sided Dolphins for company, and this is a species that will associate with other cetaceans, including resident Killer Whales. They seem to be very comfortable with her, I have seen videos of them jumping over her without being prompted. The water in her pool is kept cool.
Would I have picked this for her? No. Do I think that improvements could be made on her living situation. Yes. I think that she would benefit from a larger living space, but preferably without subjecting her to a move while it is being built. The farthest I would send her is Orlando, and even that I think would be risking it. Another Killer Whale buddy? Yes. But her white sided companions should be kept just in case that don't get along. That might be a benefit of an (admittedly unrealistic) transfer (temporary or no) to SeaWorld, she would get to have some contact with some other Killer Whales while having a place to get away from them if things don't work out.
I am opposed to any sort of release for her. Her natal pods dynamics have changed significantly since her capture. She has lost any fear she might have of humans. Her former home range is now horribly polluted. She has little to no resistance to any pathogens that might lurk. Money spent on releasing her would be better spent on conservation measures for the Southern Residents that are still there.
The Seaquarium is being sold, hopefully the company that buys it will be willing to invest in these kinds of improvements. But I'm rambling. Anyway, my point is that space isn't the only contributing factor to a long life. And I think we will crack keeping them in captivity soon, we're just going to need to stay tuned.
Just because an animal has lived in poor conditions for its entire life and is physically healthy, doesn't mean it should stay in those conditions. The captivity debate is more than just lifespan. Hell, Keiko the orca lived in similar conditions for many years, (though was physically less healthy by the time he was moved) and he had no problem adapting to his tank in Oregon or his seapen in Iceland.
As for a release? Hard to say if that's possible. But regarding the argument about pollution... Her home range today is actually less polluted than it was when she was captured. She was about 4 when she was captured, and they get most of their immunity from their mother's milk. Pollution wouldn't be an issue. I don't know if she can be released into the wild, but I do like the idea of having a big sea pen for her. If she can go back to her family, great, if she can't, well, a big sea pen would probably be a better environment for her than the tiny tank.
It's unlikely that the "Free Lolita" movement will succeed, but it's still probably the most realistic hope she has for a better life. I doubt any other park would be willing to take her. She's one of the oldest orcas in captivity, making her a risk on that front. She's probably unable to breed, making her useless as breeding stock. Her status as one of the most controversial captive orcas could make her bad publicity. She hasn't interacted with another orca for 30 years; who knows how that could affect existing pod dynamics.
But I won't lie, part of my support for that movement is out of scientific curiosity. Her unique situation means we could learn a lot about the species in an attempted released.