This would be absolutely ideal IMO. Even though the majority of PSU fans are absolute scumbags, this game brings a high level of excitement and focus back to Pennsylvania. By not playing these games against regional P5 opponents, the focus of CFB continues to travel south, outside of a very few games (Ohio State/Michigan).
If any of PSU, PITT, of WVU think by not playing each other they are somehow only hurting the others, that school is incredibly short-sighted. What happens if PSU goes 8-4 this year after being incredibly hyped for what should be a great year? I highly doubt they match their offensive numbers from last year and this year with the losses they'll have following this season (Barkley, Gesicki, etc). WVU has already fallen off the radar in the east coast market.