Agreed, to a point. (Not that there's necessarily a counter-point to what you said, just that I realize there are limitations to any system. Think about the Superbowl - they wouldn't move the site to somewhere other than Glendale if the Arizona Cardinals happened to make it there this year, would they?) To add to your argument/gripe, though, is the fact that LSU is basically playing the NC in their backyard.
A couple of other thoughts: USC and Georgia looked dominant. Like scary dominant. Both of those teams should be screaming for a playoff, and I'd hate to be the team to run up against them in one this year.
Fact is, though, there isn't a playoff, so, well, too bad. OSU had - by far - the most dominant team in the nation in 1998 but didn't get to play for the NC because they lost at home to Michigan State. I am willing to bet a huge sum of money that OSU would have throttled Tennessee (i.e., the national champs that year) in a bowl had they played. But, of well, those are the breaks - you don't win when you are supposed to and you're out.