I view putting Michigan and the nuts in the same division as an experiment. If it doesn't work it can always be reversed when the B1G adds its last two teams.
I prefer to have Michigan and TUOS in same division. It made no sense to me why they were in different div's to begin with. The Game is important. How important is it if the teams play again the following week(s) in the CCG? Renders the first game meaningless.
The way it shakes out now, The Game will more than likely determine who represents the Div in the CCG. That to me is a huge value added to the game, much like in the old days when The Game determined the Conference winner (or at least a share of it).