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I think that having two completely seperate leagues is what makes baseball awesome. Like the NBA and NHL, the two conferences are basically useless. If you are playing every team in the league, why not seed it like the NCAA Tournament instead of splitting it into two arbitrary conferences. That way, maybe you could get a decent NBA Championship instead of Western Conference Finals.
If you think about it, if MLB increased interleague play, you would probably only have like four series' per year with your division rivals. Right now, I believe you have a home and home series with the other divisions, 18 interleague games, and plenty of room to make the divisions worthwhile. I personally don't care if the Twins never get to play the Mets, the Braves, the Dodgers, the Cardinals, any of those teams. Baseball is the only league in which the two leagues are actually different, and that is what makes the World Series cool.
Of course you might guess that my favorite league system(s) are the European soccer leagues. Every country has a league and an important league championship, but then there are also international tournaments, the Champions League and the UEFA Cup, for all of the best teams in each league. I think having multiple titles you can win makes the season more exciting while also keeping a major title.
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