The Talmud states that the purpose of sending the Jews into exile was to increase the number of converts. While this may convey the impression that the exile is thus possessed of an advantage over a non-exilic state, the Maharam Shick (Bereishit 28:1-4) explains the matter differently. He observes that a large flame is able to give heat from farther away, while a small flame needs to be brought closer to give warmth. Thus, had the Jews been worthy, they would presumably have been able to have the same impact on the world while still maintaining their presence in the land of Israel (see also his comments to Esther, 3:8, printed in the volume to Shemot.)