I saw this as well. The geography doesn't make a lot of sense.
I agree, but when looking at most other conferences, it seems geography plays little part any longer. I do see the long traditional connection though of the Big 10 and Pac 10 teams, especially of old.
Maybe they will end one day in the far future with just 3 huge Major Conferences with all the top football schools, plus one remaining Conference of Independents and the not so traditional football programs. The playoffs then could be just 4 teams, the top one from each group.
If they did that, I would like to see a tradition began where at the end of each season the top team from the 'indepenent conference' could apply to replace a team in one of the major conferences. The 3 major conferences would be based on old geographic rivalries between the Northern, Southern, Western states, plus the Liberty conference.