"To keep up with their peers" is the key. Again, if you and the majority of the former P5 breakaway and form new governance and a truly competitive landscape, and earn AAC money while doing it, does it matter? Keeping up with the Joneses is driven from the top down, and it's an endless pursuit. It's chasing a mirage.
I'd rather the ISUs of the world proactively pursue their collective interests. And if that initiative ends up shrinking that peer group and separates them from the blue bloods, so be it. That peer group would still represent the majority of college football fans and have enough interest (and ultimately enough $) to be just fine.
And you painted concrete strawman is just that.