Assuming they eventually do divisions, East / West makes more sense to me (from a travel standpoint, as a BYU fan).

West: Texas schools, OSU & BYU
East: Kansas, Kansas State, Iowa State, Cinci, WV and UCF

Furthest flight: to BYU, for basically everyone, except UCF is also quite a distance for the other Eastern division schools, but like BYU, the problem is that there are just no other schools nearby.

If North/South:

South: OSU, TX schools & UCF
North: BYU, Kansas, Kansas State, Iowa State, Cinci, WV

Furthest flights: Provo to Cinci and WV (yikes). Also separates UCF from its closest schools, WV & Cinci (not good). While this puts us in Kansas' division for basketball, which may sound exciting, I'm not sure I want a repeat of having the #1 basketball school in the land in our way twice a year. I'd also find a North division the most boring for football, with the current exception of Cinci.