I think the fact that they've NEVER been to Ames is a significant factor in this. They love rivalries and love going to a place for the first time. I don't think the fact that the game is on FS1 matters as much. They used to (if my memory serves me correctly) have gameday at the same location as the marquee game on ABC Saturday nights which was called by Herbie and Mustangberger (kids movie reference, sorry). During the last 2 years at least... Herbie has done Gameday and then flown to night game location. Logistically... having Des Moines close by for Herbie to hop on a jet is not insignificant.
I, myself, hope they do come to Ames. I don't think that is conceding anything to the Cyclones... but having ESPN spotlight the rivalry is good for both programs. I don't like ESPN as much because of the direction they've gone on some things but they are still the most powerful media brand in sports... and if they promote your school... its significant.
Either way I hope Iowa kicks the ever living hell out of the Clones on their way to set the tone for another memorable season ending in a BIG championship.