He already tried that... the Mtn. network. While it was great for us Wyoming fans many MWC teams think they could do better.
I don't think it's necessarily a bad thing the direction college football coverage is headed because I believe standard TV watching will be a thing of the past in 5-10 years. I can honestly say I have not had cable TV for over 5 years now but I still watch any game I want; i.e. streaming(legal or illegal). I cannot remember the last time I watched ESPN or any other major network. All these big money conference contracts with ESPN, CBS, etc. will no longer matter as I forsee college football teams becoming more "individalized" in the way their games are broadcast. I see a point when every college program will have their own network or streaming access to every game. BYU has certainly been ahead of the times in some regards.
MLB TV is also a great example. Let's take their ridiculous blackout rules out of the equation here (which with a little know how you can work around)... I can watch every game of my favorite team anytime anywhere. I think eventually all sports will be going this route as traditional TV watchers realize what options are available and as older generations die off.