The seeding for the playoffs is clearly an issue. Although, in fairness, its kind of like those early Super Bowl games where the games would get out of control early leading to ridiculous blow-outs. It took a few years for both teams to adjust to the enormous pressure of the game. With that said - the seeding, this year, is rubbish.
Ah yes, clearly Oregon shouldn't have been #1 since they got blown out then, right? There are always blow outs in college football. You can't avoid it no matter what you do with the seeding. That being said, the whole "top four conference champs get the top four seeds" thing is really confusing to everyone.
It has less to do with seeding than it does that these are still 18-22 year old college football players and you have no idea what you're gonna get from them game-to-game. Ohio State looks like the best team in the country right now after an embarrassing loss to Michigan. Texas, a near lock for the playoffs, should have probably lost yesterday. Sometimes you just don't match up well with another team or you're just off your game. Oregon looked dreadful yesterday and no one doubted they should have been #1.