I would guess the entire point of this - the $300M price tag - is to basically get to the superleague.
You throw this out to sticker-shock almost everyone, and scare then out of the room and discussion entirely. And you can say "we didn't kick anyone out, they left on their own" for plausible deniability in the murder of CFB.
So who can afford the $300M? Well about the top 20 brands that the networks want. What a remarkable coincidence!
The rest can drop down a level to something more like what college sports is supposed to be. Very much like what @isucy86 said above. Frankly, if there are 50-60 teams in the "New" college football, and OSU, Michigan, Bama, Texas are missing... who cares. ISU really wasn't competing with them anyway. And there is still plenty of critical mass, and there will be enough media money to make it all work.
I think it reinforces what I have been saying for years about this, but maybe that's confirmation bias.
The networks can't afford for this to happen, interest in general would drop like a rock. Step 1 is for the power conferences to step away and essentially form their own league. If optimization is the idea then step 2 will be scrapping conference affiliation for football and creating regional groups.