My guess is if the players really did this, the league would have 16 teams, 8 per conference, 4 per division. It would exist only in the major markets (or places people would want to play) and would have something like a 60 game season (8*3 div, 5*4 conference, 2*8 other conf.)
Eastern Conference
NE
Boston
New York
Philly
Toronto
SE
Miami
Atlanta
Wash D.C.
Orlando
Western Conference
SW
Los Angeles
San Francisco
Denver
Phoenix
MW
Chicago
Detroit
Houston
Dallas
You get a good national mix, you cover only cities that have teams and are large and/or can easily support a team, and you load the teams up with talent.