Yes, I do understand what you are saying, but I still don't like the artificial prop of giving a bye to a Conference Champion only to FOUR teams, as winning a conference does not inherently make one team better than another.
IMO, the #5 seed easily can be a better team than the #4 seed and possibly the #3 seed in more years than not. Winning a Conference Championship with a couple of losses does not automatically make a team better than another team that lost one game but did not win their conference. For example, in 2021, Baylor (11-2) would have been the #4 seed (instead of their #7 CFP Ranking) and eventual National Champion Georgia (12-1) would have been the #5 seed (instead of their #3 CFP ranking). That's a big swing due to the artifical prop.
I am all for having Conference Champions automatically qualify for the Playoff (That is very good), I just don't think winning a Conference Championship should have anything to do with top four seeding and an automatic bye. Then, that rule goes away for the 5-12 seeding. For example, TCU would have been #5 last year while Big Xii Champion K-State would have been #9. It's pretzel logic.
Back to my example from two years ago, Georgia (12-1) which was the run away best team in CFB all year until they slipped up and lost in the SEC Championship would have been the #5 seed under this ridiculous seeding scenario and played #4 Baylor (11-2) in the quarters. Georgia would have been fine and probably still won the 12 team CFB Playoff, but the # 1 seed would have had to play Georgia in the semis while two lesser teams met in the other semi: #2 Michigan (12-1) which was stomped by UGA in the Orange vs. #3 Cincinnati (13-0) which was stomped by Alabama in the Cotton if seeds held.
So, I am all for having teams automatically qualify for the CFP by winning their conference (regardless of record), but let the seeding be done without an artifical prop for the four byes. I can live with the top two seeds being required as a Conference Champion, but the 3rd and 4th spots should be more fluid. I suppose what I am trying to say is that being the #2 seed will provide an easier path to get to the Championship Game than the #1 seed has, and that is not fair to the #1 seed. Still have to win games to be the best, but #1 shouldn't have a potentially tougher road due to an artifical prop.
Either way, the 12 team CFP will be better than the current 4 team CFP! Iowa State would have made the 2020 CFP and played Florida (IIRC). That would have been FANTASTIC!