Unfortunately for us the factors "who did you beat" and "did you play a good schedule" have been replaced by "who did you lose to."
I don't get the whole "Oklahoma avenged their loss" deal. Ohio State avenged its loss by pounding UM and beating the team that beat Purdue. We scored 45 on a team that Notre Dame only scored 31 on and beat by 10 and oh by the way NW's defense is ranked 63, Oklahoma's 108. ND played its best game against Syracuse, we played our best game against UM.
Ohio State would likely be favored in playoff games against both OK and ND yet we're left out. We'd be getting the same result if we only lost to Purdue by 3, because now the focus is on the losses and not the wins.
If you're going to ignore a team's upside, then why not UCF? If reason were to win out, you would exclude ND by assuming they lose to Clemson in the ACC championship game.