I played many years in both formats and the two groups was not very good quality. Makes much more sense to make div 2, 3 groups of 10.My understanding is that this is just phase 1. The following year they will look to expand to 20 teams (2 groups of 10). This is exactly how div1 used to be about 10-15 years ago and it was watered down kick and run soccer by half the teams. The whole idea of a pyramid is less teams at the top and more teams at each level down. Having 20 in div1 and 20 in div2 does not accomplish this.
To address the issues stated regarding length of schedule for div2 the league would be better off increasing div2 to have 3 groups of 10.