For the baseball purist, the problem and potential solution floated here is surprisingly simple:
Go back to the old form and not have divisions at all.
No wild cards, and either the winner in each league takes all in the regular season and goes to the World Series. or else the top two records in each league have some sort of a playoff.
Or, hey, here's an even more novel (and old school) idea:
How about getting rid of the Anti-trust exemption, and force revenue sharing through busting the monopoly of teams that have more money than Big Tobacco.
Or, if you really want competition, force teams to have a high percentage quota of their active players being actual products of their own farm teams. That would take teams like the Yankees out of it overnight because they stockpile talent from the free agent market while their farm system is a joke.
There are all kinds of options to make baseball more competitive. The problem is that none of the solutions are going to make for money for Major League Baseball or the Players Union than the current system.