Try to do this yourselves. When I do it, I can only find one configuration that works for me at all:
"East" -- PSU, OSU, Indiana, Purdue, Illinois, Northwestern
"West" -- Michigan, MSU, Wisconsin, Minnesota, Iowa, Nebraska
I really think this is what the powers that be have in mind. Think about it -- if you separate OSU from Michigan then you pretty much have to keep Wisconsin in the division. Nebraska has to stay with Iowa, so it's done. The divisions are in fact geographically contiguous. All major rivalries are preserved within the divisions except one, or maybe two if you count MSU-PSU.
One problem with this is the reality that the winner of OSU-PSU will almost always play for the conference championship. How often will one of the others break that stranglehold? Twice a decade? Less? You're taking the two programs from the largest and richest football recruiting states in the Big Ten, both without in-state conference rivals, and isolating them in a division by themselves. Yeah, that will work!
What are they thinking?
I'm going to guess that they are thinking that this will create a competitive championship game every year. They are right -- the champions of the West are likely to be a very good team. But they will almost always have more losses than the East champion, due to more parity within their division.
While it's fun, the point of the game is not to knock OSU out of the national championship every once in a while. That is so 1969. The point is to beat them and not just go to the Rose Bowl, but go onto the national championship ourselves. These divisions work against that ultimate goal. Indeed, any Big Ten divisional alignment that separates Michigan and Ohio State has this same fatal flaw.
I guess Dave Brandon would argue that the primary goal of conference play is to win the Big Ten championship, no matter how the Wolverines get there. That's true. But to play for the BCS championship, most years Michigan will have to win three games against OSU/PSU. Strength of schedule might allow us one conference loss along the way if the SEC champion isn't in the same predicament. That's likely to be the new reality, folks. Get used to it.