The regular season still is important in regard to seeding for the tournament. It sucks that the conference winner doesn't get the automatic bid to the big dance, but the next best thing is to lock in the top 2 seeds, thus only having to play two games to reach the big dance. I too would prefer the regular-season champion be the one to host the tournament.
Then again... teams like Sac State or Portland State would have the opportunity to host. I remember when Northern Colorado hosted in their cute little gym a few years back...