I don't know if being at the Gym would be that much better than being at Professor Oak's lab. Even if Misty appears again, the chance that she would have a Feraligatr
, or even a Croconaw
, seem pretty unlikely when, outside of Gyarados
, her Pokemon, that we saw at least, are still traditionally cute. Also, it's not like we would see any of these battles, so seeing it evolved if she ever appeared again would be about as satisfying as seeing May's Squirtle and Bulbasaur evolve without seeing their battles. At least we can assume that they're not just wasting their time at Prof. Oak's lab and possibly train if all of the new moves they use when Ash uses them again is any indication. Besides that, not having Totodile wouldn't necessarily solve the problem of Ash's Johto Pokemon not having enough focus. If Misty did get Totodile, he would have gotten some other kind of Water type Johto Pokemon, so the problem wouldn't be solved. It would just deal with two of the three starters, Noctowl
and whatever Water type they gave to Ash. That, along with how I don't think that Misty would give Totodile a significant larger amount of screentime, doesn't make me think that Misty getting Totodile would have been worth it in the long run.