You can request your membership records be moved to a different ward/stake if you so desire. We have a few people in our ward who live outside the boundaries. I think generally families would want to attend meetings with others who live in their neighborhood to form friendships. The last thing I'd want to do on a Sunday is drive 25-30 mins to another ward when there's one 10 mins away. And I'm not sure there's an epidemic of "bad bishops" out there. Bishops only serve for about 3-5 years. And unlike other faiths, bishops do not give sermons every week. So it's not like we're shopping for Oral Roberts and fleeing from Stuttering Sam. For the most part, you can pretty much expect the same type of Sacrament Meeting (Mass/Worship Service) in any LDS ward. I've never had a "bad bishop." I've had some I liked more than others, some I thought did an amazing job, but never one I considered "bad."
Now if I felt uncomfortable going to my bishop for an interview, I could always talk to the stake president. I did have kind of a situation like that, when my uncle was the presiding authority. And if I knew of some specific wrongdoing that made my bishop "bad," I would certainly report it.