I have two brief things to say on this:
1) While the decision can legitimately be questioned, Republican senators' criticisms today (to the extent I heard them) -- e.g., Lindsay Graham saying something like 'this makes horrible history' or sets a horrible precedent -- were overblown.
2) If it was going to be a federal court, better to do it in the Southern District of New York than in the Eastern District of Virginia which, as I understand it, was the other federal venue considered. Some years ago I observed part of a trial in the Eastern District of Virginia. Based on that and some other things, I think Manhattan is the better choice.