Why is the BCS for college football so stupid?

Ok i have a plan. No more BCS. What happens is that there is the top 26 and at the end of the year the top 8 go into playoffs for the national championship. The lower 18 go into the small bowl games like the Las Vegas Bowl. Anyway these top 6 play in the playoffs and if they lose they arent out til next season, but they go to like the Rose Bowl or Fiesta Bowl and play the team that lost in another bracket. Kinda confusing. So say team ranked 4 and 5 play. Team ranked 5 loses. They are out of the playoffs for the national championship but then they go to say the Rose Bowl to play a losing team in a different playoff game. I hope you follow what I am saying. Anyway what do you think?