meh, it wouldn't have been a disaster. If Nebraska had Beat Texas, they would have deserved to get in. Texas still would have gotten into the playoff via committee spot. No big disaster.
As for eight teams: over the years, I've seen too many good teams in the 9-16 to say eight is enough. Perhaps eight could be enough if you had a rule in place that undefeated teams are automatically in.
I've never lived on a College Campus, what is the big problem with the football culture?