The proposal to play home-and-home games against the five geographically closest opponents sounds reasonable in theory, but logistically that just doesn't work out for everyone.
Take UTEP for example. Their closest games would be at the other Texas schools and then Louisiana Tech and Southern Miss. However, Southern Miss's five closest games should be against UAB, MTSU, Louisiana Tech, WKU, and Rice. But, that could never happen under this format because it would then send UTEP really far across the country. North Texas and UTSA would also need far-flung replacements.
So, basically this plan would ask the schools that are geographically in the middle to take one for the team and essentially align with the schools either east or west of them, whether or not they are the closest. Or, in other words, it would create de facto divisions once again.
The only other possibility would be to just say sorry to the geographic outliers like UTEP, FIU, and FAU and tell them that their home-and-home schedule will not be configured according to distance. I guess the logic there could be that they will have to fly everywhere anyway, so get over it. But, I can't see that scenario happening either.