Louisville played in the ACC, which had a major down year (ie. weaker in-conference schedule for Louisville), while Kentucky had a difficult non-conference schedule plus it played in the strongest conference this year. This is somewhat consistent with North Carolina getting in, with its murderous non-conference schedule, even though they didn't actually win almost any of those games (UCLA being the one exception). Also with sub-.500 (in-conference) SEC teams getting in, like Texas and Oklahoma. And you could argue that SOS also explains BYU only getting a 6 seed, because of our weak OOC schedule.
Not saying I agree with them, but it seems that the committee really weighted SOS very heavily this season. Personally, I think Louisville and West Virginia got screwed, and UNC and Oklahoma were unfairly rewarded.