We'll see on that second part. Let's say Iowa is ahead of TCU in this first poll. TCU would pass them after beating Oklahoma State. Then TCU beats Oklahoma. Even if Baylor beats TCU, why would the committee punish them for that? An Iowa win over Purdue or Nebraska is not going to be impressive enough to get them ahead of some of these teams that lose their marquee game because they will have much stronger resumes otherwise (assuming they win those games)
I get your point, although I don't think this was the greatest example (I doubt Oklahoma State will be in the top ten). I think it is fair to assume that as teams lose, they will drop in the polls, and teams that remain undefeated will rise. I suppose we don't know, with just one year of experience with this system, that it will be true.
Regardless, Iowa isn't going to the playoff unless they go 13-0. That much we can agree on. And I think most reasonable college football fans would agree that they would be deserving of the playoff at that point.
Personally, I just want a Rose Bowl appearance. If you gave me the option of playing out the season and taking whatever outcome that might be, or guaranteeing me that Iowa makes the Rose Bowl, I will take the Rose Bowl without any hesitation.