Totally agree. The Pac 10 has no title game and the worst TV deal in the BCS - their business model becomes less and less viable as compared to other conferences that are growing. I don't believe for a minute that Plan B is off the table.
Here is the balancing act. If the Pac10 adds CU & UU and can hold a CCG, then they get a better TV contract. They have to split that money to two extra schools, however. Like it or not, CU & UU simply don't bring enough prestige or money to the table. Increase the size of the pie but have to split it 12 ways instead of 10. I don't think the existing schools see this as a win, especially since there would be a lot of pain & expense involved in going through an expansion.
It may not be off the table completely, but I think it's a very long shot.
Edit - Just realized that Carolina said basically the same thing