It's generally accepted that playing on your home court is an advantage. Based on that assumption there's no question that 2-3-2 is more favorable to the underdog that 2-2-1-1-1.
In a 2-3-2 series the underdog has enjoyed home court advantage after playing 5 games. They've played 3 games on their home court and 2 games on the favored team's home court.
In a 2-2-1-1-1 series the advantage is even or in favor of the favored team throughout the series.
That said, I think the format was chosen for financial reasonse, but the financial concern isn't for the teams, it's for the league and the broadcast network who have to move all of their personnel and equipment from location to location throughout the playoffs. In a 7 game series it's 3 moves vs 5 moves. Over 15 series that's 45 moves vs 75 moves.