I think tOSU is the best team right now, but they didn't play in their conference tournament. This got them leapfrogged by Penn State. ND got ranked a little too high, but was 11-1.
Winning your conference games should matter and apparently, Oregon (whose schedule wasn't backbreaking) get to play the 8th seed. Who do you want them to play: Texas? Penn State (weakest of the winners)? or ND? They have to win games anyway.
Note: Oregon dominated PART of their season. They were only up 7 in the 4th Q against FCS Idaho. Also squeaked by BSU at home....