Given the #1 criteria was shown to be Conference Championships, I'm still not sure I understand it, and I definitely HATE a team that doesn't even win it's Division (especially to a team not in the Playoff) is in the Playoff, but there's certainly enough faults with Ohio State or USC to put Alabama in. As I said, they are probably the steadiest team in the Country.
Also worried about what this tells teams about OOC scheduling. If Ohio State had scheduled Bowling Green instead of Oklahoma, would they be in? Probably, and I believe that's bad for College football and it's fans.