I read this as a big blow to KU if it goes through.
It makes it hard for the ACC to take Midwestern teams without creating travel nightmares (I'd grudgingly begun to accept the idea of joining the ACC as long as they took 3 other Midwestern teams and went to a pod scheduling system). Also, it appears that they're focusing on their identity as an east-coast conference.
It deals a nearly crippling blow to the Big East, including dropping them to only 7 members for football. It puts the Big East's AQ into the BCS in jeopardy and therefore puts the survival of the conference in jeopardy. I don't see how our rumored fallback position of a Big East invite (should the Big 12 collapse) is much consolation now.
It gives the Big Ten an opening to try to pick off a couple more Big East teams in hopes of forcing the conference to collapse and bring ND into the Big Ten at last -- leaving fewer slots in the Big Ten for us to potentially land in.
The only good thing I can see from this is that it makes a Big 12 collapse marginally less likely by cutting off all teams (including Texas) routes of escape. Not that I like being in the Big 12 with Texas being the bully, but it's better than no conference at all.