Thanks to the College Football Playoff Committee, your debate doesn't matter.
The smartest people in the sport handle who goes or doesn't go.
And they're the folks who gave us this, as you point out:

Of course, for someone who says "context matters", interesting that you left out some context:

Hmm, what's that? A bunch of 10-2 teams from the SEC/B1G ranked above 11-1 teams from the ACC/MWC and an obvious fraud from the B1G? 9-3 teams from the SEC ranked above 10-2 teams from the B12?
Seems that they don't "just rank by # of losses". Maybe they're not as lazy and stupid as you think?
I guess we could have this conversation. I don't see why we have to, but sure, why not?
All of the times they rank a team with fewer losses behind one with more losses, there's a reason (excuse) that we all know of already.
SMU and Boise are shifted down due to being from a lesser conference. Whether it's considering the ACC as lesser now or recognizing that SMU was in a G5 conference up to yesterday, it matters not.
IU, as you said, is a cellar-dweller program that has literally zero track record of success. It's consistent to rank them behind 2-loss teams you've heard of before.
The only possible exception comes next, in Bama/Miami. I suppose this is a combination of the helmetocity of Bama + the ACC as being seen as less-than, as well as Miami's defense being hot garbage all season. If you'd like to chalk this up to the voters being smart, feel free. THAT'S ONE.
The next group is SEC ranked over newcomers/weaker conference teams. And/or something as simple as "well these teams weren't supposed to be good this year." Pick your reason.
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The reason I cut it off where I did wasn't to avoid this discussion, but that none of these teams is going to win the NC. They're afterthoughts and voters treat them as such. No one is going to get blasted on social media for who they rank 15th vs who they rank 19th. The top matters.
The other reason I didn't bother with it is that the voters have been quite consistent with setting back teams from lesser conferences a level of ranking (ie - a fewer loss, but behind P5/4 programs)....which is why Mizzou being behind BYU is fairly stunning to me. Hell, that's an example of voters being inconsistent, lol.
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And I do apologize if this hasn't been evident to everyone else over the years. I tend to assume certain things are common knowledge when they are not.
Let me pick a random year's end-of-regular-season rankings:
2018

This is basically how it works and it's pretty consistent. I think you could argue there are now "name" G5-level programs that maybe get a 1-game penalty rather than the 2-games you see here with UCF and Boise.
But if you look at the top, it's child's play (thinking). All the way down to 12, with a mid-major thrown in there because of the fancy 0 in the L column, despite a high school schedule (85th, only ranked opp was fellow AAC team).
I can't be the only one who's noticed this pattern.....can I?