Yes, if that's the case, they should divide by talent not geography. It doesn't appear the geography of the games has any rhyme or reason (All North games are in Bel Air, while all South games are in HoCo for example), so why use geography as the criteria?
I don't know why they do it that way but I think it is the general parameters that are used. HoCo and Hero's white may be exceptions but it generally breaks down along geographical lines.
They do have VA teams and MDU LBC CCLax playing in Bowie though. North South was just a terrible way to divide the divisions when the division determines schedules.
I'm not sure what M&D is going to get out of it with so many light opponents. I guess they are going to have an amazing goal scored vs goals against stat, that's about it.
