Because you don't judge a team by just their losses, that makes no sense. By that logic if Houston would have won then they should have been in the NC because they wouldn't have lost. The reason they wouldn't even be considered....they have no quality wins.
If you compare strength of schedule (OSU 10 Bama 38), wins vs. the top 25 (OSU 5 Bama 2), or even wins just against teams with WINNING RECORDS (OSU 7 Bama 3) the comparison is muuuuch different. You have to look at a teams ENTIRE body of work, not just who has the "better loss."