I'm not as broken up about this loss as I might've been. Being the 5 seed is a pretty good consolation prize.
I actually think that the #5-seed (which Texas should get) is going to have a MUCH EASIER time getting to the Semifinals than the #1 or #2 seed. I think the #5-seed is the best seed in the current playoff format. It is better than the #1 or the #2 seed, even though you have to play 1 more game. Here is why:
The question is who has an easier path to get to the SemiFinals. In the SemiFinals, you will be playing a very good team regardless, so there is really no value in positioning yourself for SemiFinal placement. If you get there, you will be playing a very good team. But there is a big difference in the path to get to the SemiFinals.
The #5 playoff seeding will play the #12 playoff seed in the first round. This is very likely the winner of the 5th best conference, which is probably going to be ranked much LOWER than #12. This will probably be Clemson who was ranked 17 last week.
Then the #5 seed plays the #4 seed - which is the 4th best conference champion. This team will probably be ranked much LOWER than 4, because teams from the top 3 conferences will usually take up the higher rankings. This will probably be Arizona State, who was ranked 15 last week.
Therefore, to get to the semifinals, the #5 seed just has to beat the #12 Clemso (ranked 17) and #4 Atizona State (ranked 15).
Let's compare that to the #1 and #2 seeds. The #1 seed plays the winner of the #8 and #9 seeds. The teams who take these seeds will probably be ranked much HIGHER than 8 or 9, because the #3 and #4 seeds go to conference champions (who are probably ranked lower). These teams will probably be Ohio State (ranked 6) and Tennessee (ranked 7). Therefore the #1 seed has to play the winner of Ohio State or Tennessee to get to the SemiFinals.
The #2 seed plays the winner of the #7 and #10 seeds. Again, the teams who take these seeds will probably be ranked much HIGHER than 7 and 10. This will probably be Notre Dame (ranked 4 last week) and Indiana (ranked 9 last week). Therefore, the #2 has to play Notre Dame (most probably) to get to the SemiFinals.
I would much rather be playing Arizona State and Clemson, than either Ohio State or Notre Dame to get to the SemiFinals. That is why the #5 seed is the BEST seed in the current playoff format. And Texas should get it.