I understood your point exactly. You're vastly over weighing a win over Boise State and OSU and completely ignoring the only direct comparable mid season, common opponent results. Results that indicate IU has an equivalent level of defense and superior offense to Oregon.
You're also completely ignoring the fact that IU is beating conference and Non-con opponents dramatically. Every game.
IU offense average points: 46.56 IU opponent average points: 13.67
The closest, Washington 31-17 or... 2 touch downs in favor of IU.
Find me another undeated team who's smallest margin of victory this year is 14 points. Hint, it ain't Oregon who beat the power house Idaho 24-14 in the first game of the season. It ain't BYU who beat SMU, Okie State and UCF by 3 points. (2 of which teams have a losing record)
Not only should IU be ranked ahead of BYU(who has beaten exactly 2 good teams), but by measurable metrics they should also be ahead of Oregon.
Edit - for clarity I firmly believe IU should be ranked, at worst, #1 or #2 ahead of Miami, Texas, OSU, Georgia and certainly BYU. A case could be argued for BYU ahead of Miami, but it's a weak one. When a team plays a schedule and there are 3 opponents with a winning record, like BYU has done, and there are a lot of close games, well, it doesn't scream top 5 to me.
Notice a modicum of objectivity in that I'm not leaning a huge bias towards my team, Texas. In fact, I have zero allegiance for IU or B1G.