It works for me.
I think this is a great setup, because it makes the Southern and Family Lines as good and also provides Illinois Central a position as a bit of a spoiler role, particularly on traffic headed from the Midwest to Florida or Georgia and vice-versa. It also means all of the Western routes can interchange traffic with all three of them at Chicago, Memphis, St. Louis and New Orleans depending on where the loads are going. I did notice that this also swallows up all of the small lines, though it doesn't include the RF&P - owned by the Pennsy here as Andrew Boyd proposed?
The next question for these: do they get sucked into someone else? Your Southern is pretty much an end-to-end merger with the N&W, the Family Lines and Chessie is only really duplicating in Virginia and parts of Kentucky and CN is pretty much end-to-end with the Illinois Central. A lot of the futures of these lines would depend on the ICC or whatever agency replaces it as OTL.