With all the different alignment theories out there, I thought I'd post this a few places and see what is people's general favorite. Here's a quick rundown with positives and negatives.
East and West Division: Nebraska, Wisconsin, Minnesota, Iowa, Penn State, Maryland, Rutgers
Central Division: Ohio State, Michigan, Michigan State, Purdue, Illinois, Northwestern, Indiana
NO LOCKED CROSSOVERS
Positives: No locked crossovers means even if the conference sticks to 8 conference games, we'll play each team in the other division 2 out 7 years instead of 2 out 12 years. This does divide the big names, is relatively competitive balanced (although the east and west division is a little stronger in the middle).
Negatives: One division more compact than the other. While the closest schools remain together, it does require 1-2 locked long road games for one division. We lose the Little Brown Jug and Ohio State/Penn State as annual games.
East-West (with Michigan State in west)
East: Ohio State, Michigan, Penn State, Purdue, Indiana, Maryland, Rutgers
West: Nebraska, Minnesota, Wisconsin, Iowa, Michigan State, Illinois, Northwestern
Locked Crossovers: Michigan-Michigan State
Positives: Is fairly competitively balanced top to bottom. While the west only has one of the 4 huge names, the combination of Wisconsin, Iowa, and Michigan State helps its middle a lot. It's also mostly geographic and that will help a little for traveling. It only completely requires one locked crossover (although Illinois-Purdue could be another as that rivalry is important to a lot of Purdue fans).
Negatives: It put 3 of the big names and most the best recruiting territory in the east. It locks Michigan and Michigan State in a crossover meaning the other division will only see them 2 out 12 years and this means the Little Brown Jug will fall way by the wayside. Illinois-Purdue would as well most likely.
East-West (with Purdue in west)
East: Ohio State, Michigan, Penn State, Michigan State, Indiana, Maryland, Rutgers
West: Nebraska, Minnesota, Wisconsin, Iowa, Illinois, Northwestern, Purdue
Locked Crossovers: Purdue-Indiana
Positives: It is about as purely geographic as you can get. It only requires one locked crossover (although you could lock Michigan-Minnesota). Most major rivalries are kept.
Negatives: Very uncompetitively balanced. East is loaded with 3 of 4 of the biggest names and gets best recruiting ground and a decent middle when you add in Michigan State.
Current Alignment (Moving Illinois to Legends):
Legends: Michigan, Nebraska, Michigan State, Iowa, Northwestern, Illinois
Leaders: Ohio State, Penn State, Wisconsin, Indiana, Purdue, Maryland, Rutgers
Locked Crossovers: (a few ways this could be done, but I'd guess): Ohio State-Michigan, Penn State-Nebraska, Wisconsin-Minnesota, Purdue-Illinois, Northwestern-Indiana, Michigan State-Rutgers, Iowa-Maryland
Positives: Divides the 4 biggest names equally. Preserves most rivalries.
Negatives: It requires locked crossovers for more than a team or two (which means they'll do it for all) which means we would only play the other division 2 out of 12 years if we keep an 8 game schedule. Wisconsin in on an island in this set-up, left from all it's closest teams in the west.