Doesn't make too mich sense. You have these clubs playing eachother in their domestic leagues already, so you don't want to have to play them all over again in a geographical conference. Uefa CL format is a good model to aspire to.
The thought was to have two groups, either east-west or north-south. With 32 teams that would mean 16 teams per group. The incentive, as I see it, would be to slowly integrate leagues with close geographical proximity. It would also be a very long series which probably would have to span over two seasons with the playoffs/playins in the following year. Might sound bizarre to some but better to have a proper hockey playoffs then a one game elimination final. I think the current format lends itself poorly to what the vision must be long term. I could be way off here and I realise there are tons of problems with this idea. But I assume that the long term goal is to create some sort of European super league. It's worth discussing future formats, at least.