If OSU loses again, it will be down to record and schedule and our wins are going to look better than theirs. Especially if they lose to Iowa or Michigan. The "signature" win went to Oklahoma not OSU. There is still a path for PSU but it is a long shot.
I actually think the path is more realistic to account for both OSU and PSU getting in under following scenario than OSU dropping two and PSU getting to conference title game:
1 - OSU steamrolls rest of slate, making our 1 pt loss on road look better.
2 - ND loses (remaining: Wake, @Miami, Navy, @Stanford)
3 - Clemson loses (remaining: @NCSt, FSU, Citadel, @S. Carolina, ACC title game)
4 - Oklahoma loses (remaining: @Okie State, TCU and BXII title opponent if they make it)
Would help strengthen PSU case:
- Michigan beats Wisconsin
- NW wins out to finish 9-3
- Pitt upset Miami and/or VT
In a year like this, I don't see 2 loss conference champions being in the discussion.