Absolutely.
Nothing. Did anyone say it got you something? Huh?
True. And looked bad doing it. And that "#1 team" subsequently lost to a team that PSU killed. Now, transitive property means absolutely nothing, so I don't think those results mean anything in terms of PSU-tOSU. But I also don't see what is the accomplishment in getting clobbered by a great team. Kudos to tOSU for scheduling USC, but the result of that game tells us little about tOSU and having that loss on the schedule, even with USC being great, isn't a positive thing for tOSU. If anything, it shows that tOSU is vulnerable against a team with the right talent and gameplan (which may or may not be PSU, I guess we'll see).
Are you talking to me? Where have I said that tOSU is "inferior" to PSU? Hell, I expect PSU to lose this game, though it should be close enough to go either way. And I think that were the game in Happy Valley, that PSU would be much more likely to win. I do think PSU will fair better than in recent previous trips to the Horseshoe -- but will it be enough? I'm skeptical.
At this point, it's not really clear who is the better team. PSU has look more dominating against a less rigorous schedule. tOSU has looked beatable against some mediocre teams, but has also excelled at times. A great team in USC clobbered tOSU. In their two common opponents to date (Purdue and Wisconsin), PSU looked better [namely against the Badgers]. tOSU has a big edge playing at home, especially given the history there since PSU has joined the Big Ten.
Hopefully, it will be an interesting and fun game.