Is it? A 7-point loss on the road to OSU isn’t exactly a black-eye on the record. I think the CFP committee would have a tough time putting a 6-0 OSU in over an 8-1 Indiana who has a 7 pt road loss to OSU. Also, MSU and UM are both awful this year so OSU doesn’t have another opportunity to put up a win against a quality opponent, whereas Indiana still plays Wisconsin and would get a game against an undefeated Northwestern team who is currently in the top 10 of the CFP standings.
They’d get a massive boost from winning both of those games. Whether or not it boosts them above OSU in the committees eyes I don’t know, but the argument could definitely be made. It’d be different if OSU blew out Indiana, but since it was a close game they left some room for discussion.