I don't get the logic. A tiebreaker for a playoff spot is based first on head-to-head matchups. Just because ND may "redeem" themselves with a win in SC, they would still have the same record as Michigan.
Thats the whole problem though. This isn't a playoff system. This is a ranking system with certain unwritten rules that aren't always followed.
In a playoff system, Boise State would be #2 b/c its only based on wins and losses. I agree that head-to-head is a good tiebreaker, if its a playoff system. If ND and Mich are the only two 1-loss teams in America at the end, then and only then can we use head-to-head.