I don't know what to think. Three years ago I would have said that having the major conferences in their own division would be asinine, but with the continuously shifting landscape it's making more and more sense. The FBS is getting more and more watered down each year as FCS teams continue moving up, and the major conferences are absorbing all the fringe teams that might have a shot in a power conference. Having just the five conferences, 60 teams or so, could also potentially make a playoff system a bit more feasible.
At the same time, I think a move like this would be pointless. Give them their own division, then what? The two would still play each other all the time, no power conference team is going to fill out their non conference with nothing but other power conference teams. If anything the new division would do nothing but make the lesser half of the FBS ineligible for the playoffs, and confuse millions with another acronym to remember.