It wasn't the wrong choice -- both when we first realized we needed a refugee community back in Strikethrough and when we were TOSed in March, InsaneJournal was our best option. Dreamwidth didn't even exist then.
"Best" is not necessarily the same thing as "good," though, and we've always known that. We've been looking for a genuinely good option for a few months now, and Dreamwidth stands head and shoulders above the others.