I think deregulation with regards to allowing a conference to pick who it wants to play in its conference championship will happen as it increases the likelihood for the conference championship winner getting into the Football playoff assuming the two best teams are selected. After all success is cyclical and one division could be turn out to be significant weaker than the other. Using the B1G as an example, say Northwestern and Iowa both loose at least 1 game by the end of the season while Michigan goes undefeated, including handing Ohio St's only loss. A rematch between a likely top 5 Michigan team and a top 10 defending national champion Ohio St team will more likely than not provide the winner with one of the 4 playoff spots. On the other hand, a 1 loss Iowa team upsetting Michigan in the B1G may not get one of those coveted spots when in competition with an undefeated Clemson from the ACC, a 1 loss PAC Champion Stanford, a 1 loss SEC champion Alabama and an undefeated XII team in Baylor or TCU.
That said, the XII is dreaming if deregulation will allow a conference to host a conference championship with less than 12 teams. The other 4 conferences have heavily invested in expanding to 12 teams an beyond and its not their fault that the folks in Austin don't want to share their pie. This is especially the case for the ACC as most feel that at the end of the day there will be only 4 Power conferences and without a conference championship, the XII is likely to fall apart before the ACC does.
As for the B1G, moving to 20 teams has been rumored for a while now and I think its a good thing for UConn as UConn shoudl be well within the top 6 schools that the B1G wants (some combination of Oklahoma, Kansas, Texas, Missouri, ND [only if the ACC folds], UConn, UVA, V Tech, UNC, G Tech and Florida St) and if the B1G does not pick UConn, then UConn would be a likely fill in for the ACC should they loose a few members.