There should be 8 conferences. Each conference champion is in the playoffs. If you don't win your conference, no playoffs for you.
Sounds terrible.
If by terrible you mean exactly ideal, then yes.
Terrible.
The odds of the eight best teams in the country all being in different conferences is infinitesimal. And what good is having a playoff if you're not going to let the best teams in?
If we had 8 equal conferences (listed in OP) and an 8 team playoff, it would be beyond stupid to select more than one from any conference over an actual conference champion.
Even with the way things are set up right now I think it's total BS a non champion can get in. "Hey great job going 12-1 and winning your league, buuuuuuuuut ya see Auburn played a bunch of tough games we deemed tough in July and they only lost to Alabama by 25 points who won the SEC, so we're choosing them over you. Sowwy!"
(Edit: It's just an example, don't read too much into it. I'm just in the win your league to earn your spot camp.)