Well look at USC, they beat every team in their division yet UGA won the East...how does that work? Doesn't really make sense if you're going to say "Division Champs"...what you really mean is "Team in the division with the best conference record"..two different things
I wouldn't mind this... It's a way of equalizing the disparity in schedule strength (e.g. teams like Nebraska wouldn't be punished for having to play Ohio State, Wisconsin, and Penn State in the same season while Michigan plays Ohio State, Illinois and Purdue).