When I first read the OP, I thought "no way", but as I think about it, if the entire conference went down to a 7 game conference season, OSU, Mich, and PSU (and, probably almost all the rest of the teams) would all love it. 5 ooc games to schedule each year would rock, as each team could adjust to their own needs (the bigger teams can go get bigger opponents, the lower teams can get wins to ensure bowl eligibility, etc).
I'm not sure what it would take to decide a conference winner. Nor do I know if they would really adopt something like this. But I can't say that it is really outside of the realm of possibility...