Yahoo! columnist Dan Wetzel posted an article over a dozen years ago with his 16-team proposal. I'll summarize:
- All FBS conference champions get an automatic bid (Dan contends that FBS integrity requires it. Unless a separate mid-major playoff is established, I agree with him). The balance to be awarded to "at large" teams, e.g., most likely the SEC runner-up would get one of those bids.
- Higher see hosts all rounds until the championship game
- Championship game to be played at a neutral site. Make it Pasadena, rotate it among the "major bowl" sites, or put it up for bidding. Dan doesn't care.
If MAC champion Toledo could somehow miraculously upset the Dawgs in a first-round game in Sanford Stadium, the Rockets deserve to move on. As a 16-seed, they do not get to host. At all.
Like basketball, it's probably most likely to be #12 upsetting #5. But it would be much more difficult since the game would not be held at a neutral site.