There’s an art to this and it’s not always easy. This would obviously not be a good spot.
Most would agree. Often the choice is more subtle. At Monument Creek we thought it would be nice to nestle under the trees near the stream. Maybe in the summer but not November. I took a walk and found our site was at least 10 degrees colder than one located higher. We became quite adept at picking up our tent, full of sleeping pads and bags, and moving it to the choice spot.
At some sites, we couldn’t drink the water but it was fine to bathe and rinse our clothes.
At Hermit’s creek we had to take the last site and it was not ideal. But we spent two nights there. When our neighbors left to hike out early one morning, we scuttled over to their still warm spot with our tent, which now also held our clothes and other assorted items. What a si(gh)t(e).