Agreed. If these are the 14 schools, it should look like this:
North - UCONN, UC, WVU, ISU, KU, KSU, TCU
South - UH, UT, OU, OSU, TT, BU, BYU
You don't break up KU/KSU or OU/OSU. TX and OU have to be in the same division for the rivalry game. This keeps the TX schools largely together, except the second newest newcomer TCU, which was going to join the Big East before the B12 came calling. UT would probably be happy not to have to play them very often anyway. This alignment also gives you UCONN vs. Kansas in BB, which could develop into an interesting rivalry.