Any alignment is temporary. It's foolish to worry about the long-term consequences on recruiting, perception and competitive balance because there won't be any. The college football landscape will shift again dramatically in the next few years, and before long we'll have a PAC-16 or a 24-PAC.
For now, split them geographically into three divisions, the California schools in one, the Northwest schools in another, the Southwest schools in the third. Every team plays all three in its own division, preserving traditional rivalries, and a rotating three of four in the other two divisions. Top two teams square off for the conference championship, with appropriate tiebreakers.
Occasionally there would be controversy about the tiebreakers. Like greed, controversy is good. The BCS has made college football bigger than it has ever been.
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