None of this makes sense.
First off I agree with this from a distance standpoint.
Second, I simply see this as a first step by the conferences to save whatever of the season they can. To me this is the conferences waving the white flag and saying we don't think we can play a full season so this is now what we are going to prepare for.
I think the next step if they have to go to it is a division only schedule (which would make even less sense geographically). If they get to that point i'd argue conferences should schedule purely based on distances (so the ACC would have to schedule more North and South this year). SEC would need to rework their East-West divisions.
No matter what they decide the conferences have to have some runway to prepare for the season. I think this is mainly about narrowing out the options they think are most unlikely and then working forward from there.
While losing the OOC games don't mean alot for most of the schools (who often have no more than 1 decent OOC game), it is likely a loss of multiple home games and that is going to hurt. Ohio State's AD mentioned a couple of months ago that every lost home game was $7M in revenue they lose.