Sure, overall record can/should still be considered. The debate seems to be HOW to consider it, and how MUCH to consider it.
Assuming we win next week, our winning pct will be .846 (11-2) to Ohio State's .909 (11-1).
Hardly a big difference there, and when you consider that BOTH of our losses were very early in the season while we were experiencing an unusual rash of injuries (remember, the committee claims that injuries are a consideration to them), and OSU's loss is more recent while at full-strength, it doesn't make much sense to give Ohio State a whole lot in the "overall record" category over Penn State.
Again, that's assuming we take care of business this weekend. Obviously, if we don't, the point is moot.
In that scenario, OSU and PSU would each have a loss to a top 5 team, but PSU would also have lost to an fringe 25 ranked team. PSU's loss to top 5 team was by 30+ point's while OSU's was by 3 points. OSU has more quality wins (Mich, Wisconsin, Neb, Okla) than PSU (OSU, Iowa, Wisconsin). OSU can spin their loss on the result of a single play (I still think we would have scored on the game flow, but that's unknown). OSU has better winning percentage, which is not insignificant. Any student will tell you there is a difference between a 91% and a 85%. Both are very good but they aren't equivalent. It is hard to see the argument why a 2 loss team would trump a 1 loss team. PSU gets an extra game, but OSU already beat that team so it is hard to improve PSUs argument that a victory over Wisconsin puts them over the top.
If your argument rests on one game, then what happens when Michigan ends up with 10-2 and we are 11-2, but Michigan beat us head to head? Using your same logic to equate winning percentage then we'd be at a disadvantage due to the head to head victory.