I don't know what you think is the criteria because you're not using itLando, I don't know whether TCU is "better" than Penn State...or "better" than Alabama...and neither do you.
What I know is that TCU much better meets the selection criteria for this year's playoff than does Alabama.
And, yes, you know Alabama is better and you believe Penn State would beat them.
The playoff is designed to determine "the best 4 teams"