I don't see the game is that big of a deal anymore, for either team. Back when I was a kid, and the series was renewed after all of those years, it was a big deal, and it really lost a lot of it's luster in the 80s, and stayed that way. The series, from a football perspective, is probably better in the past 10 years than at any time in the history of the series, except, maybe the first few years. However, the atmosphere is completely different now. Iowa's program is a much more powerful, much more prestigious program than it was when the series was renewed in '77. At that time, Iowa's 12-10 upset of Iowa State in that game in '77 was considered a big accomplishment, and one of the Hawkeye's best wins of that season. And, both teams, were a lot more on equal footing. Actually, ISU was the better program in the 70s when Johnny Majors and Earle Bruce coached there, but still a generally 6-5 team, or 7-4, or maybe 8-3. Iowa, slightly less than that, mainly a lot of 4-7 teams, some 3-8 years, etc. So at that time, the programs were a good match. Neither were really in a position to go to bowl games, so it was a big thing to play for.
30 years later, the landscape has changed. One program is much more dominant now. And, the best in-state rivalries in the country are usually schools from the same conference. Not all, but most of them are. Think Auburn-Alabama, Texas-Texas A&M, USC-UCLA, etc. That takes a little away from the Iowa ISU rivalry, unless they're both about equal in their respective conferences, which they are not. In Iowa's interest, they could really do well to schedule a name program from another power conference. It would be fun to see them play an LSU, or Florida State, or Texas on one of those weeks. For ISU, they would do well to replace Iowa with a Mountain West school, or a WAC school, a Big East school, or another Big 10 school. Actually, I've thought for a long time a nice rivalry for ISU each year would be Minnesota. That game would be great for both schools. Since the New Big 12 is round robin, those OOC games for ISU should be slanted in their favor, or at least winnable.
And, Iowa and ISU could play a home and home every now and then, just to keep things interesting in the state. Anyway, I think that the 2 teams not playing anymore may be a good thing. There would be plenty of fan interest for both schools with the new conference schedules.