Tell me what you think, boys. Here are my thoughts.

1) I think the 12 teams should be represented by a combination of Automatic (via Conf Champ) plus At-Large.

2) I do think the non-Power 5 teams need representation. If those teams don't have a real chance, they should split off into a Tier 2 association:
a) Could take the top-ranked non-Power 5 team. Similar to that team locking into a New Years Day bowl. This year that team is Tulane.
b) I think a better approach would be a play-in game. Take the top two non-Power 5 Conf Champions and play them off. This year the five candidates would be: Tulane, UTSA, Toledo, Fresno, and Troy.
...This year, the play-in game would have likely been Tulane vs Troy. One could argue for Fresno if you adjust for the games Haener missed. Let's assume Tulane wins the play-in game.

3) List of 12 participants.
...Automatic (5 Power5 champs plus Play-in winner): Clem, KanSt, Georgia, Michigan, Utah, and Tulane.
...At Large (best 6): Alab, TCU, OhioSt, TENN, USC, PennSt.
...I think most of these are easy picks. I think Tenn would be downgraded for Hooker injury (but still make it).
...PennSt is a solid sixth pick. Their two losses look better than Washington's two losses.

4) Play the first two rounds on Campus home sites.

5) Set the bracket to separate conference foes until the Semifinals.

Here's what it would look like:
9 USC at 8 KanSt. Give the HFA to KanSt based on KanSt winning Conf Champ.
...winner at 1 Georgia.

12 Tulane at 5 Alab. Is there any chance Tulane COULD win this game? I think they could.
...winner at 4 Ohio St.

10 TENN at 7 Utah. Vols downgraded for QB injury. They do the same thing in NCAABB tournament.
...winner at 2 Mich

11 Penn St at 6 Clemson
...winner at 3 TCU