Oh the hyperbole.
Bama is beatable by any team with enough athletes, which is probably 20 teams. Does Alabama lose? Probably not, but they are not unbeatable. They have had better teams under Saban, their defense has been better too. Clemson and Ohio St. probably have the most athletes among the contenders, but a team like Washington, Wisconsin, PSU, Oklahoma, etc all could do it on a good day. There are no bad teams among the contenders for the playoffs, so Bama could certainly get beat.
Penn St. does not suck, unless your definition of sucking is "Bama, and everyone else sucks". They are 10-2 and beat Ohio St. If PSU beats Wisconsin in the title game (assuming they beat Minn), then I think PSU should be in a playoff over Ohio St. PSU has a heads up win over OSU, and conference titles do matter IMO. If it was an 10-3 PSU team winning the conference, that is a different matter, but 10-2 winning it with a win over OSU is a better argument than 11-1, in this case.
As of right now, Alabama and Clemson are the clear favorites for the playoffs. I think if Washington wins out they should get the third spot over anyone else, given 11-1 and the Conf title. Then, there is a lot of relative arguments for the 4th spot. PSU at 11-2 with wins over OSU and Wiscy is a good argument. An 11-1 OSU with a win over Michigan is a good argument, as is Oklahoma at 10-2 and conf title with wins over WVU and OSU. If Florida wins out, they have a good argument too, at 10-2 and a win over Bama and FSU in the last two weeks. Even Wiscy at 10-2 with a win over PSU is an argument. WVU and Okie probably can't get in no matter what, at this point. Even a win over Oklahoma probably doesn't gain enough ground for a 10-2 Okie St., even with a conf title. That loss to CMU just kills them. Whichever 10-2 team that wins the Big 10 CCG would have a better argument anyway, at that point, as would an 11-1 OSU team this year.
I think one loss teams with conf titles should have a better argument than 2 loss teams in most cases, but 1 loss teams without a conf title (which is rare) are more of a coin flip with 2 loss teams and a conf title. That is why I give Washington the 3rd spot if they win out (and assuming Clemson & Bama win out). No matter what, then you get to two loss teams it's just a lot of relative arguments, so among the 2 loss teams, I am not going to get pissed no matter who gets in for the 4th spot.