Class 1 would consist of undefeated teams that have met a level of scheduling as decided prior to the season that would put them in the upper 50% of all college football teams.
Class 2 would consist of undefeated teams whose strength of schedules put them in the lower 50% of all college football teams. This class would also consist of all one loss teams whose loss came to a team ranked higher than any opponent faced by the undefeated teams as one criteria by which a one-loss team could enter the post-season. That way a team that loses to a tough opponent will not be ousted by any team that has played nobody all year. The only other way a one-loss team should enter the playoff format would be to have faced an overall schedule a certain percent higher than any of the Class 2 undefeateds, with that percentage amount agreed upon by all of college football in advance of the season. Personally, I would start this percentage as only allowing those one-loss teams in the upper 10% of college football in strength of schedule and adjust from there after giving it 2-3 years to see how fair that works out.
So basically, one loss and you are in Class Two. Undefeateds that schedule patsies drop to Class Two as a scheduling penalty. Class Two teams get the much tougher road to travel in every bracket I set up.
Where this criteria failed is in providing a penalty for one loss qualifiers that schedule patsies. I'd agree with adding that you can still qualify if you lose to a better team than the worst scheduled undefeated team has played BUT you must have an overall schedule in the upper 50% of the game to get that exception. That way teams can't schedule all patsies and one tough game and get in by virtue of that tough game being to a higher rated team than a patsy scheduling undefeated team plays to get in.
Seeing how the system works in all the different real world scenarios allows for modifications to improve it. It took seeing Wisconsin getting in with this real world scenario to see that a strength of schedule penalty for one loss Class Two qualifiers would be a good addition.
In the scenario of a team like Boise State going undefeated, it opens things up to where most every one loss team from the major conference would qualify, or in this case every one loss team qualifies. Setting a strength of schedule modifier for cases like this is helpful IMO and strengthens the desired heavy penalty for losing a game in the regular season that I want to maintain.