I am happy to add Nebraska into the fold, but I am trying to figure out how the divisions will work without completely hosing Penn State on travel.
I am assuming that Michigan/MSu/OSU will have to stay together. Indiana and Purdue will have to stay together. Minnesota and Wisconsin will have to stay together.Iowa and Minnesota may have to stay to gether (not sure on that one.). The pseudo rivalries that can definitely be split are Illinois/NW (Much like most of the rest of Big Ten can't get excited about playing one of these schools unless they lose to them, neither can Illinois or NW get too excited about each other in general), and the non-rivalry that is MSU and Penn State.
I am also assuming that Nebraska and Iowa will now be joined at the hip in a new alignment. So I guess that leaves:
Michigan, OSU, MSU, Purdue(??), Indiana (??), and either Illinois or NW (Leans toward NW if only to avoid a completely ridiculous basketball division)
Nebraska, Iowa, Minnesota, Wisconsin, Penn State (??), and either Illinois or NW (Leans toward Illinois for reasons above)
To balance the travel, you would have to sub in PSU for into the (Insert Team from Illinois slot here) positon in Division 1, but that would be awful for competitive balance in football.