I think march madness is awful. Basketball isn't a 1-loss sport... there should be a 16-tm playoff there with a best of 3 series each weekend (Wed-Fri-Sat; Thur-Sat-Sun). Heck, make it a double elimination tourney like baseball and I'd probably be ok with it. Doubt you'll ever see me promote March Madness as the model for how a champion should be crowned in hoops.
NFL model... div champs get homefield. Win a shirty div at 8-8 and you get home field over teams that are sitting at 11 or 12 wins. That ain't right for CFB.
Problem with a playoff in CFB is I am not sure how it works "fairly". Everyone seems like they believe conf champs should be in there yet nobody was nearly as outraged that Bama played for the MNC this year (as opposed to Neb that made it in past years with cries of "they didn't deserve it!") so obviously BCS has major issues. Do you let in just conference champs? What if this year you get a conference like SEC with 3 of top 8 teams, 5 of top 16? Does quality on the field determine who gets in? If so, how do you define quality when there are vastly different strength of schedules in a conference let alone across the country?
That written, I have to come up with a "solution" to be fair. Create seven "9-team" leagues based off the old conferences... BE, ACC, B10, SEC, SWC, B8, P10. Each champ gets in 8tm playoff. Midmajors get 1 bid --- 4tm playoff between Mtn West, WAC, MAC, and CUSA with the champ getting into the 8th spot. No ranking of spots as the ranking systems are fundamentally flawed (people are innately biased, impossible to set up computers w/o MOV imo) so the home games in rd 1 are based on rotating sites --- 7 "BCS" cities with each one getting four rd 1 gms, 2 semis, 1 final in a 7year cycle. How to split the money... 1 money unit to each conf (majors get 1/8th, four midmajors get 1/8th collectively). "Put we have more teams!" from the bigger conferences... tough, nobody said you had to have that many.
I put the genie back in the bottle with back to 9 team leagues so if that doesn't work, I think you have to come up with a way to get an odd number of BCS conf members in so little kids can play with the big boys or break away from NCAA, set up four "16tm" conferences with top two from each conf getting into the playoff (I simply don't trust polls/selection committees). Note: this alternative will likely take years to work out in the court system.
And no, none of this will work. : /