People will wait in a line..to get in the line in this scenario. The university isn't going to staff officers to disperse people from waiting in line. I think what will come out of this is assigned seating based on the # of mens and womens games you go to. Obviously seniors who have gone to all mens and womens games will get the best seats. It keeps people from waiting in line in the elements, no rush to get the best seats when the doors open, and encourages people to go to the womens games. Drawback is you probably won't be next to the people who you want to sit with unless you go to the same amount of games. It isn't perfect but I wouldn't be surprised to see ISU switch to this.
Merit is probably the best way, but I also think no different than lottery you will end up having boring people get in the first row. Just because you are senior and been to a ton of games, doesn't mean you are the best fan to be in the front row.
I have thought for years, that ISU would be smart to put together a supporters group like the American Outlaws for US Soccer. And then you would have chant and song leaders that essentially police the group to ensure everyone is enthusiastic. The atmosphere in Hilton is so much better since the end of the lottery that I know that shouldn't be enacted again.
Also as far as line forming, if you take away tents, heaters and sleeping bags, I don't think you would have too many lines that form before the day of the game. Sorry but it seems to me kids shouldn't be out in the weather that Iowa has experienced over the last week. It has to impact their studies.