The concept is ok but the alignment could be better. I think something along these lines makes more sense:
North: , Cincinnati, Milwaukee, Minnesota, Toronto, Both Chicago franchises, Cleveland, Detroit,
East: Boston, both New York franchises, Washington, Baltimore, Philadelphia, Montreal, and Pittsburgh
South: Colorado, Kansas City, St. Louis, Texas, Atlanta,Tampa Bay, Houston, and Miami
Some tweaks might be better, maybe swaping Cleveland for Montreal so both Canadian teams are in the same division.
It would really make no sense to me to not have all the big eastern cities in the same division.