Bigger Stadium means more fan interest - even during lean years. The fact that two second fiddle teams in their own state in the Big Xii have bigger stadiums and more fans than a Pac-12 Power that is the premier team in their own state says something about the issues at hand in the Pac-12.
FWIW, Iowa State finished first in the Big Xii Regular Season last year AND still had the best record in the Big Xii after losing the CCG (ISU was 8-2, and OU was 7-2). No Trophy, but that is just semantics, I know, but no different than the Wash. State and Ore. State Co-Championships in the moth ball Era. Neither of those programs are anywhere as good as Iowa State right now and have NEVER had as much fan support.
As for better team, Iowa State beat both the Big Xii and the Pac 12 Championship last year, and they are loaded for bear again this year. Iowa State has a very strong team with many all-Big Xii and All-American caliber players and a strong program heading into 2021. The program is in GREAT shape and not a one hit wonder. FWIW, all of the 5th year seniors at Iowa State have only experienced winning, have played in the Liberty Bowl (W), Alamo Bowl (L), Camping World Bowl (L) and Fiesta Bowl (W) and have won a game in every other Big Xii Stadium (including @ Oklahoma and @ Texas).
If the Pac-12 doesn't want them, that's their business.