The schools would also have to know if they are hosting our traveling that weekend. But you could tie that too how many home conference game each school has. Not sure your idea of blue blood vs blue blood is going to make people like Iowa, Illinois and Purdue real happy. "How great, we get an away game with Cal this year." Or "we get Washington St on the schedule."The big added value in a scheduling alliance is TV flexibility. I imagine it would look something like this: the B1G and Pac-12 agree to twelve Rose Alliance games every year, televised by FOX or FS1. Those games are not scheduled until the spring before they’re played - like six months in advance. All the schools know until then is the date of the game - the week kept open for a Rose Alliance game.
FOX plays a very large role in arranging the matchups. The network is guaranteed to get to broadcast games between teams that it really wants to have play each other. So Ohio State and Michigan would play USC and Oregon a lot, but also in years where a middle-of-the-pack team is really good - like Stanford or Michigan State have been - the network can cash in on that, too. FOX would pay a premium for this. It’s a bit like the B1G-ACC or Big 12-SEC basketball series, in which ESPN does exactly that.
I tend to think after a while if those schools are not playing the USC's and Stanford's of the Pac 12, then they will be saying "we were better off playing ISU every year than this crap, at least ISU was close and cheaper for the university."