They don't
That is the point.
Each has a case to be #1.
Will never be a national Champion without a playoff.
I totally agree that a playoff is needed, but since when does being undefeated automatically makes the case for being #1?? I mean if you go undefeated in division II, should you be ranked above Alabama? I mean I think strength of scheduled ABSOLUTELY needs to play a part.
They got hosed because there is no playoff, not because they went undefeated....