So under this plan, Colorado would switch to a DH, which should provide for a massive amount of home runs by them. Now, let's look at the National League:
This one was tough. I had to move Colorado to the AL because I wanted to try to keep it geographically correct, and unless you moved the Dodgers back to Brooklyn, there really was no way possible. St. Louis is technically not in the East, but then again Kansas City isn't in the South. They're kinda in the middle, so for all intents and purposes, they had to go to the AL South.
Now, we've gotta come up with two cities to put expansion teams in. Truthfully you could move Washington into the NL South, since they play in the Southeast division in the NHL. But then where in the East would you put an expansion team? I'd say Brooklyn, but let's keep it to one city per league. So, back to the South. Put them in a smallish market that had an NL team until the turn of the 20th century. Put an NL team back in Louisville! The AL is a no-brainer: New Orleans. I'm sure the Superdome could be used for such a purpose until a baseball-specific stadium is built.
Just an idea which probably won't happen, since this is the same MLB leadership that wanted to contract Montreal and Minnesota (which, as a lifelong Braves fan, I would not have shed any tears had Minnesota went away) and probably thinks expansion is suicidal. But, for the sake of competetive balance, they should do this anyway. And in the ensuing expansion draft, leave no player protected, BUT the teams could only pick from the league they're going into. Let these teams be competetive from Day One.