It's the same old story about merging confederations. In my opinion, the minimum number of confederations needed is 4. AFC and OFC could conceivably merge, as could CONCACAF and CONMEBOL.
This would leave us with the following situation
AFC (46) + OFC (11)=57 members
CONCACAF (40) +CONMEBOL (10)=50 members - (45 in FIFA)
This would be a much better distribution of teams, with all confederations having practically the same level of membership (though the combined AFC+OFC confederation would have the most scope for increase with several independent Pacific nations still to join FIFA....). The AFC already has geographical subdivisions, and the OFC could just become another of these divisions.
As for CONCACAF/CONMEBOL - Matches such as Brazil v Anguilla would not happen, as preliminary rounds would weed out the weaker teams. However, travel costs would increase for the better CONCACAF teams and also for CONMEBOL teams.