I agree with just about all of this. But, as noted, for a number of money-related reasons (the biggest being that power-conference schools want to play 7 or 8 home games a year and can only strong-arm the little guys who need the big check into playing road games with no return trip; the second biggest being TV dollars making conferences pursue odd moves like the B1G adding Rutgers, solely to pretend that the Big Ten Network now has "the New York market" and should cost more) we will never really see that.
At the very least, I wish they would roll back the rule allowing FBS teams to count wins over FCS teams toward bowl eligibility, or better yet, ban all FBS teams from playing FCS teams, period. They're literally playing by a different set of rules (fewer scholarships) and it's dumb. You want to fill out your non-league schedule with creampuffs, fine, get a game with Illinois, Kansas, or Purdue.
So, if we are going to keep the current system, and...
I don't think I've mentioned in on this thread, but my favorite possible playoff system would take a page from Division III (non-scholarship; where I played!) football. D3 football has 240+ teams and a 32-team playoff. How does it work? The 25 conference champions get an automatic bid; there is one spot reserved for the highest-ranked team that does not have access to an auto-bid (independents, teams changing leagues who aren't eligible for a league title, leagues that have recently added/lost teams that do not have their auto bid yet); and the remaining seven slots are doled out in a process based on the NCAA's Regional Rankings (the highest ranked team from the North, South, East, and West Regions are put on the table, the committee-selected best of those four gets in; that team is replaced with the next team up from that region, and repeated until the remaining at-large spots are filled).
This could easily be applied to D1 for an 8-team playoff. Power Five conference champions are all in; one at large bid reserved for highest-ranked team from a non-P5 conference (Boise State, Western Michigan); two at large bids for the two highest-ranked teams not yet in the playoff.
Play the first round games on campus of the higher seed (I would even be fine if it was a rule that you had to be a conference champ to host; I would also be fine with a rule that prevented league rematches in the first round), the semifinals at a rotating cast of neutral sites (existing major bowls), and the title game in the Rose Bowl every year.
Using the first set of CFP rankings from this year...
Western Michigan (little guy bid) @ Alabama (SEC champ)
Oklahoma (Big 12 champ) @ Clemson (ACC champ)
Texas A&M (at large) @ Michigan (B1G champ)
Ohio State (at large) @ Washington (Pac-12 champ)
I know there would still be plenty of complaining about this, too...SEC fans would bitch about the inclusion of any non-P5 team, and you'd have the occasional year where one conference was a little down and their champ was like 9-3 (might happen with Big 12 this year). I don't care. The coolest thing about this is that everyone has a road to the title, you still give a leg up to the P5, and you'd no-doubt-about-it get at least the 4 or 5 best teams into the field.