I know this is no revelation to anyone, but I believe that the Big Ten alignment should just be very geographical, right down the Indiana / Illinois border and I have what I believe is the solution to scheduling that will make everyone happy. This alignment also makes the most competitive sense as well since both Iowa and Wisconsin are very competitive and with Nebraska, will easily make the Black as strong as the Blue.
Black Division: Nebraska, Wisconsin, Iowa, Minnesota, Illinois & Northwestern (Black for Iowa & Nebraska)
Blue Division: Penn State, Ohio State, Michigan, Michigan State, Indiana & Purdue. (Blue for Penn State & Michigan)
Every team will play the following:
3 out of conference games & 9 conference games
5 in-division games
2 permanent locks from the opposing division
remaining four teams are rotated in, 2 for two years, then the other two.
With this, I believe almost every rivalry, can be maintained, and the new ones cultivated, and the conference can take advantage of the most marque match-ups. Most importantly, every team will see every other team at least every three years.
Using Penn State as an example:
3 OOC games, 5 in-division games, 2 permanent locks with Nebraska and Iowa, rotating Minnesota, Illinois, Northwestern & Wisconsin.