1. What was their SOS before playing OSU? Serious question. I think playing OSU saved them from having a very high/low SOS. But I could be wrong.
I'm not going to argue with you about if they should have been in the playoffs. But if you don't think how they and SMU played today won't affect the committee going forward, I think you're pretty naive. Same scenario next year and Alabama, South Carolina or others will be in there.
As I said, I think IU schedules exactly like a team in their position should. Make it as easy as you can to make a bowl every year. Don't challenge yourself early, just get 3 for sure wins and then hope for the best in conference. They had a very nice year and if I were an IU fan I would be thrilled. I think if you can take off your crimson glasses you would agree they were outclassed and didn't belong in that game. But if not, that's ok no big deal.