PSU lost 2 games, 1 by 39 points, and by 3 to a four-loss team presently ranked 23rd.
Michigan lost 2 games, one to an unranked Iowa team.
OSU lost 1 game by 3 points. To the presently 5th ranked team.
2 losses is more than one.
The 4 teams in the playoff from Power 5 conferences all have zero or one loss.
Why would someone think that a 2-loss team that lost a game by 39 points, and lost a game to a team outside of the Top 20 would be more deserving than a 1-loss team that lost to a 5th-ranked team by 3 points?
The best 4 teams are in the playoff.