If you're alluding to a need for two of those programs in each division, then I don't know, man. I don't want to see OSU and Michigan split unless the two are still guaranteed to play each year, and you aren't going to put PSU in the same division with the likes of Nebraska, Iowa, Minny and Wisky. I tend to think an East-West division allignment, as described above, wouldn't be as unbalanced as it may first appear. In reality, PSU has only been a slight tick better than Wisky since PSU joined, and with Wisky primed for a big year and PSU rebuilding to some extent, that gap may narrow after 2010.
I expect this move would actually help Nebraska's program quite a bit by making them a "hot" team in recruits' eyes for a period of time, perhaps putting them back over the hump and into that elite category (especially if they can increasingly pluck talent from PA and OH). I think the move could also help Iowa, in that it creates a new big-time rivalry with Nebraska that kids will want to be a part of.
There's no doubt in my mind that a division headlined by OSU, PSU and scUM would be stronger than one headlined by Nebraska, Wisky and Iowa, but I don't think the gap is quite as great as it may first appear. In general, I'm somewhat skeptical of attempts to balance power between divisions, anyway. When the North-South divide was established in the Big XII, Nebraska, Kansas State and Colorado made it look like a relatively even split (remember, Oklahoma was down at that time). Hell, one could even argue the North was stronger in the mid-90s to early 2000s. My how that changed. These things are pretty cyclical, and while I do think a headline of OSU, PSU and scUM is more steady than Nebraska, Wisky and Iowa, scUM is doing its best to prove my point these days, and PSU has thrown out its fair share of stinkers as well.