I mostly agree with the idea but if you don't think Bowl Committees would favor the teams in the south, you're outta your mind. 75% of the bowl games are in the South East. So it would just give way more accolades to SEC and ACC teams.
I think it would require picks that guarantee the best game possible because the bowl committees need to make money and secure tv ratings to maintain or increase their standing in the draft. What you say might be true at the bottom of the draft, I suppose, where there would be fewer compelling matchups the incentive to get a couple local fan bases in the stadium instead might override. But they risk losing credibility by doing so, like the Humanitarian Bowl does by selecting the home town team 85% of the time.
Overall, I think fan bases at these schools would like more variety in games and locations to attend and this would help achieve that.