Well, not quite. There's a big-time cultural difference where lots of people that didn't attend SEC schools in the South still follow such SEC schools. This is also an area of the country that's adding population rapidly. So, by no means are they any more saturated with respect to college football than the Boston market could get more saturated with respect to pro sports. A large issue is that state flagships receive less support (whether financial or emotional) in the Northeast compared to any other region in the country. This goes back generations where so much of the focus on college education in the Northeast is on the Ivy League schools and other elite private universities. That simply isn't as prevalent elsewhere and, by extension, translates to broader sports support for the flagships that dominate the BCS landscape.
Related to the focus on private schools in the Northeast, no conference has any real critical mass of alums in any of the Northeastern markets. Those alums might be in places like NYC and Boston in sheer numbers, but it's VERY low in market penetration. Compare this to LA and Chicago, which are the #2 and #3 TV markets in the country. Even though they're large pro sports markets, they still have high proportions of alums SPECIFICALLY from the Pac-12 and Big Ten schools, respectively, which means those conferences truly deliver those markets. It becomes self-perpetuating because those Pac-12 and Big Ten schools send literally tens of thousands of alums to those markets every single year. NYC gets tons of college grads, but they're dispersed among so many different conferences and so many different schools that no single conference (or school) can get traction. You can't go anywhere in Chicago without running into multitudes of Big Ten grads (or even just from the University of Illinois), but you're no more likely to walk into a Big East grad on Wall Street as you would a Big Ten or ACC grad. That's a demographic issue that probably won't ever be resolved (and why conferences might like the idea of adding the NYC market in theory, but largely have determined that it's fool's gold).
As a result, it's as tough for college sports to gain traction in the Northeast as it is for hockey to gain traction in the South. In theory, it makes sense for college conferences to go after the Northeast market just like it made sense for the NHL to add Sun Belt teams, yet they're pushing up against much broader cultural factors. It also doesn't help that the one school that is a massive draw in the Northeast (Penn State) happens to play in the Big Ten.
UConn actually does a fairly good job of delivering its home state considering it's in the Northeast, which is why it has long-term value, although the state of Connecticut alone likely isn't enough right now. The main issue is simply the youth of its football program. All of those years of Division I-AA football don't count in the eyes of the power conferences. In their minds, UConn football is as much of an upstart as USF. Rutgers has a terrible football history, but it's at least a long football history. From an outside perspective, that's what UConn has to resolve, and there might not be anything other than the passage of time itself to change that.