So essentially you'd have
Pod 1
team 1, 2, 3, 4
Pod 2
team 5, 6, 7, 8
Pod 3
team 9, 10, 11, 12
Pod 4
team 13, 14, 15, 16
Let's say Pod 2 is the California schools. Let's say if you're in Pod 1 that you play the pod 1 teams in '12, the pod 2 teams in '13, and the pod 3 teams in '14. That leaves you with 2 more conference games. I assume you have 1 protected rival in each of the other pods to get you up to 9 games.
That would mean that in 2012 you'd play all the Cali schools, but in 2013 and 2014 you would only play 1 game against the Cali schools. I guess if you want to tell recruits you'll play the Cali schools one go around in your 4 years (except 1 of every 3 classes) then you can hope that'd sell them.
As far as a conf championship game goes, if you assume your divisions are essentially 8 teams divisions which rotate every year its going to stink on the years where you have a tie in the standings with multiple teams from different pods or if there is competitive unbalance on some years when the strongest pods are in the same division.