Well look at this way.
If Iowa traded places with Indiana and played in the East. Iowa would probably have a record of 7-4. But that takes badly balanced divisions and makes them even worse.
So let's say they trade Iowa and Michigan and Iowa plays in the east and Michigan in the West. Iowa would probably have a record of 8-3 (5-3) and would finish 3rd in the east
Since Iowa is going to the CCG, Iowa will end up losing 3 games. One way or another, Iowa is a 3-loss team, with 2 of the losses to top-12 teams.