Disagree on this. I see the Badger ceiling as just below elite: e.g., able to compete for conference championships, win them from time to time, and compete for the playoff race in the years when the talent and experience line up right.
The Badger ceiling isn't Alabama/OSU likely for the reason that Badge stated, but also because UW doesn't have a benefactor, like Phil Knight, willing to throw money at the program. And that only kind of worked for Oregon.
Wisconsin has lost its last four Rose Bowl appearances, which sucks, but it won the three before that. In each of the last four, the game was competitive to the end, with the Stanford one the least so (and the least deserving for the Badgers). This loss felt the worst of the four because like the Illinois loss earlier in the year, Wisconsin played well enough to win it going away, but turned the ball over enough to give it away (or, if you prefer, Oregon caused enough turnovers to take it away). Turnovers: four, for -3=bad. Plus a missed field goal, so effectively five turnovers. Brutal. And resulted in a one-point loss to the Pac-12's best team. Tragic, but not damning.
While the game itself was frustrating, that hardly tells me Wisconsin can't compete at the highest levels. I don't expect the Badgers to be a yearly fixture in the playoff race, but I do expect Wisconsin is capable of winning the B1G from time to time and going to the playoff in those years.