Frankly what I'm scared is going to happen is OSU, Michigan, and PSU leave the Big 10, Clemson, FSU, and Miami leave the ACC, USC, Oregon, and Washington leave the Pac 12 (or some other combination of departures for the new SEC league) and ISU and Iowa will be in the same conference in the new 1AA league.
Honestly, I don't think you should really be concerned about that because that almost sounds preferable to the system we have now.
The reasons I'm concerned for Iowa State is because we're currently in an arms race and if we don't get into the Big 10, PAC - 12 or ACC, we're going to be left behind by Iowa, we're going to be playing schools that we have no history with and that we're nothing alike, and it's just going to be another thing that the complete ******** in your fanbase use to make fun of us.
But that wouldn't happen in the scenario that you're concerned about.
No, there wouldn't be as much money and you wouldn't get the top talent, but would you as a fan really notice that? In that scenario there would probably be a realignment of the conferences so that the teams made geographic and "institutional" (where the schools are similar) sense. In that scenario, you'd probably be in a conference of the Big 10 West, Indiana, Iowa State, Michigan State, and maybe Kansas and Kansas State (if it was a 12 team conference vs. a 10 team one). Would you really dislike that conference? Plus everyone would have less money, so we'd all be on a level playing field.
I'm biased because I'm a fan of a D3 school (Wooster), but it isn't that bad. Wooster is in a conference with similar schools and that are close by. I can listen to all their games online on the radio, and can watch most of them on the internet.