Is it better to submit a paper to an important journal without the supervisor name or to a less important journal with the supervisor name?
In my view, using authorship as a bargaining chip like this is ethically inappropriate.

Either the supervisor's contributions to the paper warrant including him as an author, or they don't.

If they do, then he needs to be listed as a co-author no matter where you publish, and you need his agreement on where the paper is to be submitted.

If they don't, then he should not be listed as a co-author, no matter where you publish, and you and the remaining authors can make your own decision about where to submit (though you still might value his input).