If merging is a necessity (still unconvinced), then I like the suggestions made (I think both of us have made it at different times in this thread) of having different national divisions with a regional div 1. I think #3 is less likely than #2 (which is kinda what I was talking about... in some form). Of the choices tabled by BBRyan at the very beginning, I'd go with #2.
http://with-malice.com/ - The half-crazed ramblings of a Lakers fanatic in Japan