It seems as though the more practical way to do this might be to realign the divisions every offseason to balance the strength of schedules. Unfortunately for the BIG, that might mean splitting up OSU and Michigan every so often.
Another way to do it would be to eliminate divisions and then set schedules based on the previous season's records. You could make the top teams' schedules the toughest, and Rutgres schedule the easiest.
At the end of the season, the top 2 teams go to the BIG championship game, and then--get this--the winner of the BIG championship game goes to the college football playoff. So that the BIG championship game effectively becomes a first-round playoff game. LIke it already should be.