I agree 100%. The only problem is that humans are stupid. It doesn't matter what our strength of schedule is,
the human voters look at box
scores 75% of the time and make their judgment based on the stats. If we go beat USC 21-10 at the Coliseum it won't matter. It just doesn't "look" as good as 62-51, even though the margin is the same. The computers understand that box scores aren't everything, which is why Oregon is 4th in their metrics. Alabama and ND are the only teams ranked #1 by the computers.
K State has no business being in the conversation really. They've had a couple lousy games like we have, playing down to North Texas and Iowa State. And their SOS is miserable compared to ours (33 to 10). And like you said, against like opponents we've been the better team.
You can argue that the ranked teams we've played didn't deserve the ranking, but look at their schedule. It's even worse. Texas Tech? OK State? West Virginia? The toughest games on their schedule are Oklahoma (who we dismantled), and... Texas? Seriously? Kansas just ran all over Texas. Oklahoma made them look like a D2 team. They're giving up 32 points a game to horrible teams. Seriously, K State has no business being in the BCS NC discussion assuming Alabama, Oregon, and ND win out.
You can attribute a lot of our human ranking to two things: Notre Dame hatred, and the media's perpetual Big12 hard-on, even when the entire conference is God-awful in every way. Then the rest can be blamed on the Pitt game

.