The location shouldn't matter so long as it's a well crafted story and performed well. That being said I think it would be a box office failure.
The more I think about this subject, I think in such a movie, the space station itself should just be a backdrop for the story--a place for our heroes to come from and to later hang their hats when the job is done. Otherwise, the real action should take place in the vicinity of the station and our heroes could still zip around in a cool mini-starship (or two) and deal with threats and mysteries in their area. But more than anything, the movie should have characters that audiences can root for as well as a story & script that works on multiple levels (action, humor, drama, tragedy, etc.), IMO. It must also be the only new Trek production in years.
Confused, disorientated, memory loss, blurry vision. Well, that means nothing new. So, let's do it. I am a bit worried about the skin irritations though. But seriously... I think, it could work, but I don't know if it would work with characters nobody knew before. So I could imagine a DS9 movie, but one with a completely new crew might be difficult. On a starship you have a very limited number of main characters. You can introduce them rather quickly and have time to tell a story. On a space station as we saw on DS9 the number of characters necessary to make it seem real is bigger and I don't know if that makes it possible to make a movie as good as on a starship. Well, it's surely possible, but I think it's more difficult.
Oh God I just had a vision from the prophets... a reboot movie with Will Smith and son as Ben and Jake Sisko! KILL IT! KILL IT NOW!
What came to mind is Will Smith's "Welcome to Earth" punch from Independence Day... this alone may qualify him to play Sisko.
I think this approach is the only to keep the Abrahms verse going once Pine and co decide they're going to leave (probably after the trilogy if Pegg is to believed). Get (some of) them to do one more movie which is a crossover with whatever you're going to do next, be it Space Station like here or another crew. Best case would be some of the actors getting re-assigned, just like O'Brian onto DS9