Its interesting...but i feel it may have given the south an advantage:
war depends upon two things most desperatly when you are playing on your home turf: Massing the men quickly and effectivly to confront, flank, and annilate the opposing forces. the second is maintaining a valid and clear line of communication with your superiors in the political control area. having a centralised capital deep in the south was probably more ideal than some think.
Montgomery was the hub city of the south at that time. The roads leading in and out of montgomery were pretty much like todays modern city, allowing for the rapid ingress of telegraph, train, and horse carried postal. Thus, communications could be delayed to the front in virginia, but rapidly assessed east, west and south, especially with mobile, atlanta, vicksburg, and new orleans.
Along with the ease in communications was the sub presence of industry not under threat of attack. In birminham, they mine iron ore and make iron: tredger in virgina was just a manufacturer. the presence of cotton, naval supplys such as pine wood, turpintine, and cotton, would have been centrally under the watchful eyes of the confederate government: this may have ensured its rapid and more unobtrusive use in the war effort, as opposed to a more lukewarm response it got later in the war.
I always felt that Lee was artifically handicapped with having to worry too much about richmond under attack. While not tied to the richmond capital area with his troops, Gen Robert E. Lee was alway cautious of a sudden and quick attack on richmond, which was just 90 miles or so from the dreaded union in Washington, DC. certainly this fed into much of his main battle strategys throughout the war.
So...whats it all mean? I think that if they would have kept the capital in montgomery, they might have stood a better chance against the union. Still, it was the Norths willingness to throw so much men and weapons against the south that really broke its back.
If we should have to fight, we should be prepared to do so from the neck up instead of from the neck down. General James H. Doolittle, USAAF