I'm going to attempt to avoid a debate with FirstTimer and JeremyHeight on this subject...our opinions are very clear, from the MM debates.
I say you take the top eight teams, and seed them. First round in the BCS bowls, two more semi-final games after that, and then the BCS national championship game. Really, the only thing that has to happen for this to work would be to dissolve the current automatic bids that conferences get in the BCS bowls, and add two games. That's it. All of the non-playoff schools keep their bowls. Also, I don't care how you pick them...committee, BCS, some new-fangled polling system. Don't give a fuck. But I feel the BCS does a decent job at determining the cream of the crop in football. However, anytime two teams out of 120 are the only ones given a chance at the national title, the system is seriously flawed.