In addition to the world renowned sarcasMike playoff, I stumbled across these two playoff suggestions.
WhatIfSports has a suggestion very similar to mine. Eleven conference champs plus five at-large teams. They use the BCS rankings instead of the CFRC, so the teams are slightly different. If you look back at their previous years, Michigan has been in the tournament twice, in 2004 and 2006, with their best finish #2 in 2006.
The second example is from an actual 1998 patent application. It's not the easiest read, but it looks like a 12 team playoff with the teams determined by a combination of the media and coaches poll and an objective formula. The top 4 teams get byes. Games are at campus sites at least until the final four. This suggestion also has a secondary 16 team playoff with the next 16 teams. I assume this takes the place of bowl games.
Obviously I prefer the system that includes conference champs over one that selects the entire field subjectively. I wonder how the secondary playoff would do compared to keeping the majority of the bowls in tact, interesting idea.