Yeah, but it's only their non conference schedule that is a joke. That's just 3 games. In a big super conference like the Big 10 is now, a team can have a joke non conference schedule and still have a tough overall schedule.
When the conference schedule came out for IU they had newcomers like UCLA and Washington, along with OSU and Michigan. That cannot be called a joke schedule. IU couldn't help these normal powers would all have an off season.
Now I agree they probably shouldn't make the playoff if they lose to OSU, but it wasn't because their schedule was a joke, it was just an unlucky circumstance this season.