I *think* I'd be OK with PSU-Nebraska each year as the last game of the regular season. Frankly, I never really thought the PSU-MSU match-up was that exciting. I have nothing against MSU, but it never really felt like a great way to end the season. With PSU-Nebraska, you probably have a large contingent of alums my age and older that will recall 1994 and favor the match-up.
How do you address PSU v OSU/UM? I think if you can create a rotation where PSU plays either OSU or UM each year you still satisfy the desire to pair up with one of these two schools. We'd be playing one of them every year, it just rotates which one.
Plus, if PSU is powering through their division and OSU / UM are doing the same...we'd play the other divisional powerhouse during the Championship game anyway. Yeah, there's a chance two teams could play each other more than once but I don't think that's a big deal.
PSU-Nebraska to end the season, every season.
PSU v OSU or UM every season, but not both in one season unless the pairing is via the B10 Championship.
...I think that could work.